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PGA Tour accuses sponsor of breach of contract

On Behalf of | Jan 24, 2019 | Commercial Litigation |

When two or more companies in Louisiana reach an agreement to enter a business relationship, each party may do so with every intention of upholding its end of the deal. However, circumstances can change, and should a company become incapable of complying with contractual obligations, the other parties may wish to take steps to pursue restitution. The Professional Golfers’ Association is seeking as much as $1.19 million in restitution after accusing a sponsor of breach of contract.

The PGA Tour claims that it initially reached a five-year sponsorship agreement with the company Digital Ally. In the agreement, the PGA Tour had arranged to name one of its tour stops the Digital Ally Open. However, over the past two years, it asserts that Digital Ally has failed to pay its annual sponsorship fees and it has since filed a breach of contract lawsuit against the company.

Representatives from Digital Ally contest that the agreement has failed to produce the expected monetary benefits. The company also states that it has recently experienced financial difficulties but wishes to find a way to resolve the dispute and continue as a sponsor. Should the two parties fail to come to an arrangement through mediation, they may be left preparing for litigation.

Disagreements over financial obligations is one of the most common causes for contract disputes. Those who encounter a breach of contract may choose to consult with an attorney for guidance on their available options and what to expect from the process. An attorney in Louisiana can examine the client’s situation and help form a strategy to protect his or her financial interests through the necessary outlets.