New York City jewelry buyer CIRCA has fired back in Hearts On Fire’s lawsuit against it, claiming the Boston diamond company first breached the two parties’ contract, which called for HOF to sell it excess merchandise in exchange for ad placements.
On March 20, HOF filed a suit in Massachusetts federal court, claiming that it believed CIRCA would charge “reasonable” ad commissions, but it charged as much as 60 percent.
Four days later, CIRCA responded in a counterclaim that it had no choice, as HOF sold it “underperforming merchandise,” which factored into the eventual ad commissions.
The deal ended in November 2013. CIRCA says HOF still owes the company $450,000, and it claims HOF did not complain about the commissions until it got the final bill.
The suit charges breach of contract, breach of covenant, and seeks $450,000 in damages.