KeaneTel Wins Partial Summary Judgment From MetTel

Channel Partners

August 24, 2009

2 Min Read
KeaneTel Wins Partial Summary Judgment From MetTel

Master agent KeaneTel of Atco, N.J., has been awarded partial summary judgment of more than $70,000 by the New York County Supreme Court for the failure by MetTel (Metropolitan Telecommunications) to pay commissions due KeaneTel for the period February 2007 through September 2007. KeaneTel is continuing to proceed in the court and seeks a judgment of more than $540,000 in earned commissions plus more than $560,000 additional for forward-looking commissions under the evergreen provisions of its contract.

“We are delighted with the partial summary judgment awarded by the court,” said Peter Keane, senior partner of KeaneTel. “It clearly demonstrates, by the award of the full amount requested, the validity of the claim. Unfortunately, MetTel continues to fight the court order, has not made payment of the amount found by the court to be owed and has filed an appeal. We believe that this demonstrates their lack of commitment to their agent contracts.”

The case revolves around several key allegations including that MetTel, in violation of its agent agreement with KeaneTel, recruited subagents KeaneTel had brought to them, paid those subagents directly; ceased paying KeaneTel on any accounts sold by KeaneTel or their subagents and ignored the evergreen provisions of the contract.

“The root cause of this matter is that MetTel tried to strong arm KeaneTel in to signing a new contract subsequent to the changes by the courts for UNE-P in 2006,” said Keane. “We refused to capitulate to MetTel’s demands for, among other reasons, [the fact] they would have cost us a dramatic reduction in commissions and the loss of protective covenants in our existing agreement. We believe that MetTel’s response was to interfere with several existing subagent relationships and stop paying us for what we sold. KeaneTel is committed to take this case through whatever legal steps and courts we need to, to ensure that we obtain the benefit of our contract.

“To date, this litigation has cost us tens of thousands of dollars,” Keane continued. “We have a responsibility to our employees and subagent partners to continue pressing forward with this litigation until its inevitable conclusion, and we intend to do so until it is resolved in our favor.”

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