Peak Web suit seeks recovery of $1.38 million plus termination charge

By Caroline Salls

Pittsburgh, June 13 – Peak Web LLC filed a lawsuit Tuesday against Mindjolt, Inc. and Jam City, Inc. in an attempt to recover $1.38 million, plus a termination charge, allegedly owed in connection with a master services agreement, according to a filing with the U.S. Bankruptcy Court for the District of Oregon.

Peak Web said it entered a master services agreement with the defendants on Aug. 1, 2010. Under that agreement, Peak Web provided services to the defendants.

The company said the defendants owe it a termination charge and the full amount of all remaining monthly charges if the defendants terminate or cancel the agreement for any reason other than Peak Web’s breach before the January 2019 expiration date.

On Dec. 28, 2016, Peak Web said the court approved its motion to assign the agreement to IT Lynk Corp., which Peak Web said is its right under the agreement.

However, because the defendants allegedly failed to perform their obligations under the agreement, IT Lynk transferred the rights back to Peak Web.

As of Tuesday, Peak Web said the defendants owed it $1.38 million, plus the termination charge, including $135,172 for services provided by Peak in December 2016 and $1.25 million for the remaining period of the agreement.

Peak Web, which does business as Peak Hosting, is a West Linn, Ore., data center. The company filed for bankruptcy on June 13, 2016 under Chapter 11 case number 16-32311.

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