Two Texas consulting companies are suing a New Jersey man, alleging he did not fulfill contractual obligations.
ACIUS Group and Survivor Outreach Services (SOS), both of Frisco, filed a lawsuit July 2 in the Sherman Division for the Eastern District of Texas against Terence Gorman of Montclair, N.J., alleging breach of contract.
While the three parties were negotiating a "possible business relationship," the suit states, they entered into a non-disclosure and confidentiality agreement.
One month later, they entered into a commission agreement stating Gorman would receive an advance against commissions to be earned in the future, the complaint says.
During negotiations, Gorman represented he had substantial business contacts and would bring new accounts and business to ACIUS and SOS, the suit says. The plaintiffs tendered advances and benefits to Gorman totaling not less than $525,000 over a two-year period per the commission agreement terms, the lawsuit states.
The suit alleges Gorman accepted these payments and benefits but failed to bring any new accounts or business to ACIUS or SOS, failed to generate the requisite level of sales to justify the advances and failed to achieve any of the agreed-upon sales and performances metrics.
Gorman was then separated from the plaintiffs and retained the unearned commission payments and benefits, then started a business named Gorman Strategy that is in direct competition with the plaintiffs, the suit says. As a result of Gorman's breach of contract, the suit sates, the plaintiffs have suffered damages of more than $525,000.
ACIUS and SOS seek damages from the breach of contract, plus attorney fees. They are represented by attorneys James W. Walker and Justin S. Levy of Cole Schotz in Dallas.
Sherman Division for the Eastern District of Texas case number 4:15-cv-00448-RC-DDB