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Supplier sues Dick's Sporting Goods for breach of contract

Dick's Sporting Goods, a national retail chain with outlets in Texas, is the target of a new federal lawsuit filed by Battle Born Munitions Inc. The munitions company claims in court filings that Dick's failed to accept orders of custom branded goods and meet payment deadlines. The delays allegedly violated the supply contract and cost Battle Born Munitions millions of dollars.

The contract at the heart of the dispute stated that Battle Born Munitions would customize large quantities of ammunition with Dick's brand name and packaging. The retail chain agreed to accept delivery of the custom goods by November 16, 2016. The plaintiff goes on to accuse the retailer of fraud because the company allegedly knew when it executed the contract that it would not meet deadlines.

According to the lawsuit, the munitions company had to invest almost $4.5 million to produce the custom goods. The delays tied up money at Battle Born Munitions to such an extent that the company lost an opportunity with another potential client worth $37 million. When Dick's did not accept delivery of the ammunition, the supplier had to spend more money to warehouse the goods. Dick's finally accepted the ammunition in August 2017, but the supplier also claims that the retailer took unauthorized discounts.

Companies and individuals depend on parties meeting the terms of contracts in order to make financial decisions and meet important obligations. A person who needs to enforce a contract or defend against claims of violating a contract could seek out legal advice. An attorney familiar with contract disputes could recommend how to resolve the problem. Negotiations led by an attorney might produce a settlement, but intractable disagreements might require taking the case to court.


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