Moxie Sozo has filed suit against former client Newton Running for failure to pay outstanding invoices, breach of contract and to prevent Newton from further using Moxie Sozo’s advertising and creative materials. This is the first time in the agency’s 14-year history it has filed suit against a former client.
Newton Running is a Boulder, CO running shoe brand that hired Moxie Sozo in 2012 as the company’s Creative Agency of Record. Newton Running has been utilizing creative works designed and executed by Moxie Sozo in ecommerce, brick and mortar, and social media settings both domestically and internationally without compensation.
Moxie Sozo has tried for months to collect payment for services out of court, filed a notice of breach in early April of 2013, and has made multiple requests for past due payments.
“In fourteen years of business, we have had phenomenal relationships with our clients,” says Leif Steiner, Principal and Creative Director at Moxie Sozo. “This is a regretful episode that we expect will be swiftly rectified through the courts."
This does bring up the question of what to do when clients default on payment. It sadly seems to happen a lot in our industry. When it does and you're a small agency or individual, you typically have to roll over and chalk it up as a "learning experience." For all of us who have been screwed before, we're glad to see an agency that's rightfully taking the power back.