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Verizon sued for breach of contract by ESPN

When two companies enter into a contract in Nevada, and elsewhere, it is expected that each side will abide by the terms of the contract. Should one company, or the other, not fulfill their obligations as stated in the contract, business disputes may arise. In some cases, this can lead to serious legal issues.

According to reports, Verizon Communications has been hit with one lawsuit, and more could be on the horizon. Cable sports network, ESPN, recently filed a lawsuit against the communications giant for alleged breach of contract. In the lawsuit, ESPN suggests that Verizon violated their contract through the communications company’s pay TV plan. NBC Universal and Twenty-First Century Fox have also suggested that Verizon breached the terms of their contracts. It remains unknown to the public at this time, however, whether NBC or Fox will also file lawsuits.

The dispute reportedly stems from Verizon’s new pay TV plan. With traditional subscriptions, consumers pay for a large group of networks. ESPN is often included in these packages. Verizon’s new plan, on the other hand, allows consumers to purchase smaller genre-specific channel packages. The details of the contract were not reported. Additionally, it was not disclosed specifically how Verizon’s pay TV plan violated the contracts.

For companies who are doing business with other companies, or organizations, business contracts can be valuable tools. They are often used to express the obligations and responsibilities of each side. When the terms of these contracts are violated or breached, however, there may be grounds for legal action. Those who have experienced situations such as this may benefit from consulting with an attorney to discuss their rights and options.

Source: New York Post, “ESPN slaps Verizon with breach-of-contract suit,” April 27, 2015

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