Thursday, September 13, 2012

Sports memorabilia company suing competitor and Legends Hospitality over ... - Dallas Morning News (blog)

A Carrollton company that’s auctioned sports memorabilia at Dallas Cowboys home games for 15 years is now suing over the cancellation of its contract.

CSD Sports Framing & Memorabilia filed the lawsuit in Dallas County yesterday claiming that Legends Hospitality, which handled that contract for the Cowboys, violated its contract for the 2012-13 season. The lawsuit said the contract would automatically renew unless Legends notified them to contrary by Dec. 1, 2011. Here’s the contract language CSD cited in the lawsuit:

The initial term of the agreement shall be July 1, 2011 through February 1, 2012. On or before December 1, 2011, Legends & Hospitality Management will notify CSD of its intent [sic] continue the agreement, otherwise, the agreement will automatically extend under the same terms through February 1, 2013.

CSD is accusing Legends â€" originally founded in part by the Cowboys and New York Yankees â€" of breach of contract, fraud and negligent misrepresentation. The Carrollton company is also suing its Cowboys Stadium replacement, All Pro Classics based in Hot Springs, Ark., for tortuous interference.

Eric Gelfand, senior vice president of communications at Legends, said the company had no comment about the lawsuit.

Terry Toler, president of All Pro Classics, said this afternoon he was unaware of the lawsuit. I e-mailed him a copy and was awaiting a response.

The attorney for CSD was out of the office today and hasn’t been available to talk.

In the lawsuit, CSD said a Legends executive told them last November that their Cowboys Stadium deal would be renewed. A Legends official also told CSD that the contract would be extended through the 2012-13 season as recently as mid-August, according to lawsuit.

The lawsuit said CSD only learned that its contract was being cancelled Aug. 21, four days before the Cowboys first preseason game. That’s after the company stocked up on memorabilia to sell at Cowboys games this season in addition to merchandise they planned to sell at the Alabama-Michigan college football game, the lawsuit said.

CSD is claiming “hundreds of thousands of dollars” in damages from the loss of sales at the stadium and business generated by the exposure from selling at Cowboys games.

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