Toy manufacturer has failed to pay for marketing, suit claims.

Michelle Massey, East Texas Bureau Jun. 8, 2010, 10:49am

A manufacturer of motorized riding toys has failed to pay more than $341,000 it owes on a marketing and merchandizing contract, according to a recently filed lawsuit.

Crossmark Inc. filed a breach of contract lawsuit against Dumar International USA Inc., Motiontrendz Inc., Ballard Pacific Resources Inc., John Feeley and Fa-Lan LU on April 10 in the 380th Judicial District Court of Collin County. Three of the defendants filed to remove the case to the federal court in the Eastern District of Texas, Sherman Division, on May 27.

Crossmark is in the business of offering in-store marketing and merchandising solutions for manufacturers of consumer goods.

According to the lawsuit, a manufacturer and seller of motorized riding toys, Dumar International, entered into a contract with Crossmark for sales and retail merchandising assistance.

Specifically, Crossmark agreed to provide merchandising services for Dumar's products, including ensuring that the display models were placed properly, removing damaged displays, and working with retailers to order any out-of-stock items.

Crossmark states that Dumar has not made any payments and has not responded to formal demands for payment.

Causes of action filed against the defendants include breach of contract, fraud and conspiracy to commit fraud, fraudulent transfer, and unjust enrichment.

In addition to actual damages, the plaintiff is asking for an award of interest and attorney's fees.

Dallas attorneys Stephen E. Fox, Kelly D. Hine and John C.C. Sanders Jr. of Fish & Richardson PC are representing the plaintiff.

U.S. District Judge Richard A. Schell is assigned to the litigation.

Case No. 4:10cv00266

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