Early termination and contractual rights

The Client

Digital Marketing agency

Value of Dispute

£150,000

The Commercial Dispute

Our marketing agency client provided e-commerce and marketing services to the debtor on an annual basis. However, the debtor decided to terminate the contract early and cease using the agency’s services. Despite this, the agency retained the contractual right to charge for the remaining term of the agreement, notwithstanding the work in progress, which became payable immediately upon termination.

How Escalate Resolved – Services Used

Escalate contacted the debtor to inform them of the client’s contractual entitlement to repayment, despite the early termination. However, our efforts were initially ignored. We quickly escalated the matter by initiating legal proceedings to recover the outstanding amount. In response, the debtor instructed solicitors to defend the claim and filed a counterclaim of similar value.

Before the matter went to trial, the debtor agreed to settle by paying a substantial sum towards damages and costs, which included the withdrawal of the counterclaim.