MRO Services, LLC thought it was beginning a great business relationship with the Dresser-Rand Group, Inc. in mid March of this year to market and sell Dresser-Rand’s maintenance agreements and equipment services. Yet little after a month of doing business, Dresser-Rand terminated what was supposed to be a five year exclusive contract. MRO was to earn $35,000 a month for the first year of the agreement as a retainer fee, a commission of up to 5 percent for all maintenance agreements sold, and reimbursement of travel costs as approved by Dresser-Rand’s budget.
When MRO was served a letter ending the agreement on April 18, MRO started looking into why Dresser-Rand terminated the relationship. MRO’s lawsuit and complaint documents in Texas’ 113th District Court allege that the contract ended because Dresser-Rand said that MRO’s founder had acted improperly at a social gathering they hosted. MRO says this is “bogus” and alleges that Dresser-Rand wrongfully ended the contract and owes it $38.9 million in damages.
MRO focuses on technical and service-related risk management products for power plants and the energy industry. Dresser-Rand’s maintenance products, heavy industrial turbines, and steam turbines were a good fit for MRO’s many energy industry clients.
“Even if these specious allegations were completely true, Dresser-Rand still had no contractual right to terminate the agreement,” the complaint says. Instead, MRO claims Dresser-Rand might have not realized the true cost of the contract, Dresser’s senior personnel might have viewed them as a threat or did not want them to work for a competitor, or wanted to scale back its operations with power plants.
When businesses are faced with complex contract disputes and terminations, it is imperative that they get legal counsel early on. Austin business litigation attorney and Austin breach of contract attorney Gregory D. Jordan understands the importance of resolving business disputes quickly and efficiently. Most business disputes can be settled short of litigation; yet if litigation is the only route, you want a trial attorney that will aggressively pursue and protect your business’ rights.
At the Law Offices of Gregory D. Jordan, Austin business litigation lawyer and Austin breach of contract attorney Gregory D. Jordan has more than 20 years of experience successfully representing businesses and individuals in business contract disputes. To learn more, please contact Austin business attorney Gregory D. Jordan at http://www.theaustintriallawyer.com or call (512) 419-0684.