The Credit Union Executives Society has prevailed in a lawsuit brought by a training company that alleged the professional organization shirked its duties in a marketing partnership, according to court documents. CUES was also awarded $884,315.70 in unpaid royalties, according to court documents.
The original suit, filed in Iowa District Court on July 6, 2015, by the Cedar Rapids, Iowa-based BVS Inc., alleged CUES failed to perform “certain marketing activities” under a deal dating back to 2011.
According to BVS, the two organizations formed an online training partnership that year, and BVS agreed to pay CUES a royalty or commission for new business and renewals. BVS, which provides staff training and member education services, claimed CUES agreed to provide free access to or space on its website, in its publications and via speaking roles at CUES conferences and conventions.
In the suit, BVS claimed CUES dropped the ball, however.
“CUES failed and refused to perform the marketing activities required under the contract, or performed them so poorly as to constitute a material breach of contract” and failed to invest “substantial marketing dollars” to promote the relationship, it said in court documents. BVS later added fraud to its complaints, alleging CUES intended to collect royalties and commissions from BVS without investing in a serious effort to expand the customer base.
CUES, which is based in Madison, Wis., denied the allegations. It also countersued, claiming BVS breached its contract when it stopped paying CUES in April 2014, according to court documents.
The case went before a jury on Dec. 2.
“The entire CUES team and our board are very pleased that the jury ultimately sided with our organization,” CUES SVP and Chief Learning Officer Christopher Stevenson told CU Times. “We’ve fought vigorously for more than a year to pursue what was just and true on behalf of our members, our team and most importantly our reputation as a leading talent development provider for credit union leaders. We are ready to put this matter behind us. Now, our focus is looking ahead to 2017 and continuing to exceed the expectations of our members and partners.”
BVS has not responded to a request for comment.
