Disputes between a company and a former founder are not uncommon in Oregon and other states. Founders and creators of a company do not always stay compatible with the other leaders of the company as it grows and moves forward. A recent case in another state is an example how such events can occur and be resolved after the initiation of business litigation.
Smashing Boxes, an up and coming app developer, filed a lawsuit in 2018 against one of its original founders and his new employer, Futures. The case alleged a breach of contract in several different respects. One of the claims is that Futures poached the prior Smashing Boxes officer when it was performing a services contract with Smashing Boxes.
The lawsuit also contained a claim for more than $250,000 in unpaid work on the contract. There were also allegations of bad faith action taken by the former officer against the plaintiff company in the performance of the contract with Futures. As may always happen in the middle of a business litigation controversy, however, news recently emerged that the case has settled.
Lawyers for both companies recently announced that the litigation was settled and discontinued. News reports appear to present a picture where Smashing Boxes agreed to drop the suit when it was able to learn all of the outstanding facts. With no indication of the specific terms of the cessation of the litigation, it is unknown whether any consideration passed from one side to the other to bring the matter to a conclusion.
This is a relatively common scenario in breach of contract business litigation. In Oregon and other states, a case may get to a certain point where one side or the other decides to push aggressively for a quick settlement and to close the conflict. The negotiations between companies in those scenarios can take many different twists and turns. Sometimes, the companies decide that they will be better off continuing to do business together in the future, after agreed steps are taken to even the contractual playing field.