Platinum Trading Institute of America, Inc. v. Platinum Associated Limited, Case No 1:19-cv-167 (S.D. Ohio March 4, 2019) is a case that has to do with a contractual disagreement.
UK-based company Platinum Investment Associates (“PIA”) entered into an agreement with Platinum Trading Institute of America (“PTIA”). The former company that trains people on cryptocurrency and ICO trading. Its agreement with PTIA was made in an effort to gain entry to U.S market. By the agreement, PTIA would promote the sale of PIA’s services to U.S. residents.
PTIA would essentially represent PIA and PIA would be paid 100,000-pound sterling. Further, PTIA would have a hedge when sales were not robust. According to the specific terms of the agreement, “[i]f gross sales of [PIA] products in the Territory did not amount to a sum of $100,000 (US Dollars) during the first year of the Agreement, PIA was required under this [agreement] to pay PTI-A (US Dollars) during the first year of the Agreement, PIA was required under this [agreement] to pay PTI-A 35,000 pounds sterling on May 31, 2018.” One of the major issues is how to prove whether sales exceeded the amount.
During the first year, allegedly sales did not reach $100,000, which means that PIA had to pay 35,000 pounds to PTIA. However, the May 31, 2018 date came and passed, and PIA did not pay the funds to PTIA. As a result, the parties negotiated an amendment to the original agreement stating that sales goal would be reached by February 28, 2019. However, the second deadline came and passed, and PIA did not turn over documentation concerning its sales and did not pay the 35,000 pounds sterling.
The suit was filed to require disclosure of the documents about the sales number. Further, the complaint alleges that PIA fraudulently induced PTIA into an agreement with the knowledge that it would never be able to pay the funds in the event that it did not reach its sales goals. Interestingly enough, the documents that PIA seeks may be in India and there is no indication as to whether they are in electronic form, allowing for each access. PIA’s response should provide some insight.
Disclaimer: this summary is solely for educational purposes, and are not for legal advice. It is an opinion only and is not authored for any past, present, or future client or employer.