Ky. company sues local gift card venture over licensing deal

Sister company of Brentwood's Comdata seeking to terminate agreement and accelerate outstanding balances

Email | Print By Walker Duncan

A contentious licensing agreement has landed a local gift card company in court.

Louisville-based Stored Value Solutions has filed a lawsuit against Brentwood’s ProfitPoint in Davidson County Chancery Court over fees stemming from a 2007 software licensing agreement between the two companies.

According to SVS, ProfitPoint has failed to pay installments of various fees associated with the agreement. As such, Kentucky-based SVS, a sister company of Brentwood’s Comdata, is seeking to terminate the agreement and accelerate all of the remaining balances.

The filing, available here, details the various fees and remaining balances which range in amounts from $10,000 for the quarterly installment of the “annual fixed fee” to the remaining balance of the “Merchant Portfolio Fee,” which comes in at just north of $1 million.

SVS asserts in the suit that it notified ProfitPoint of the alleged breach, but further claims that the Brentwood company “refuses to cure.”

Now, SVS wants out. Having given the notice it claims that the agreement requires, the company states in the filing that it has the right to “terminate the agreement immediately.”

In addition to the monetary damages, SVS asks the court to issue a “declaration that ProfitPoint, upon termination, must cease using and return all confidential information as defined in the Agreement, the Software and all associated materials.”

Both SVS’ sister company, Comdata, and its parent Ceridian Corp., have invested in ProfitPoint, which has received backing from Clayton Associates.

ProfitPoint’s CEO Vaden Landers, reached by NashvillePost.com this afternoon, said he had not yet had a chance to review the filing and could not offer comment at the time. NashvillePost.com will update this story with any further comment should it be offered.

Representing SVS, are Tim Warnock and Elizabeth Gonser of Riley Warnock & Jacobson.