BSG, LLC v. Check Velocity, Inc.

A contract required payment of "fee residuals" from customers referred by BSG, LLC to Check Velocity, a company providing check re-presentment services. The contract provided that payment of fee residuals survived the termination of the agreement between the parties and continued until the "expiration of the Customer agreements as they may be renewed." Two agreements were executed between a referred customer and Check Velocity. The first agreement, which expired by its own terms, provided for check re-presentment services. The second agreement continued the re-presentment services required by the first agreement and added additional services. In addition, other terms of the first agreement were changed, including a choice of law provision. The Supreme Court held that the second agreement with additional services and changed terms was not a renewal of the first agreement, thus reversing the court of appeals and affirming the trial court's grant of summary judgment in favor of Check Velocity. View "BSG, LLC v. Check Velocity, Inc." on Justia Law