Marketing retainer contract dispute – non-payment and termination

The Client

Digital Marketing agency

Value of Dispute

£85,000

The Commercial Dispute

Our client provided digital marketing services to the debtor on an annual retainer, payable on a month-by-month basis. These services were originally engaged by the debtor’s Head of Marketing, who was dismissed after a month in the role. It was argued by the Directors of the debtor company that the Head of Marketing did not have authority to bind the company to marketing agreements, despite evidence to the contrary.

In breaching the contract by virtue of the debtor’s non-payment and subsequent termination, the client was entitled to the full remaining sum of the contract payable immediately. 

How Escalate Resolved – Services Used

Escalate wrote to the debtor to request full payment of the marketing retainer, but the debtor quickly instructed a solicitor who argued that the Head of Marketing did not have the requisite authority. However, the legal basis of this was challenged. We provided the debtor’s solicitor with a witness statement from the former Head of Marketing which stated that her former employers were both aware of the contracts that she had engaged, and that it was within the scope of her role during her employment.

We were wholly confident in the client’s position but when pushed by the debtor’s solicitor, proceedings were issued as a last resort. The claim was quickly settled at £80,000.