Contracts and Agreements Continue to be Contentious Within the E-Sports Community

In any business venture, contracts are essential to keeping and maintaining partnerships. Keeping the ins-and-outs of what each person’s responsibilities include can help to preserve expectations and keep morale high among those involved. Within the esports industry, however, contracts and agreements have remained contentious. In a previous blog, we had detailed how the esports industry was rocked by a recent lawsuit between Turner “Tfue” Tenney and his former esports organization Faze Clan. Now, Faze Clan has filed a countersuit against Tenney to block his attempts to allegedly disparage and leave the organization.

Faze Clan alleged Tenney violated his contract by disparaging the company and attempting to form a rival esports organization. In addition to these claims, Faze Clan stated Tenny made more than $20 million in streaming, gaming endorsements, and sponsorships, and that he, “shared almost none of this income with Faze Clan.” The business plans to seek compensation from Tenney for its services and unspecified damages under the terms of the contract. Faze Clan is also seeking injunctive relief to prevent Tenney from revealing any confidential information about Faze Clan, disparaging the company publicly, and potentially interfering with its current roster of talent.

In the initial suit filed by Tenney, he claimed Faze Clan failed to pay him his share of brand deal revenue and grossly undercut his earnings. Tenney’s suit also claimed Faze Clan had the right, according to Tenney’s contract, to take up to 80 percent of his earnings in certain situations; this, however, was denied by Faze Clan who claimed it had never done so.

The countersuit against Tenney alleges his actions have resulted in “serious damage,” that could affect members of Faze Clan’s team. In addition to this, the suit also claims Tenney’s goal is to set up a rival esports company, alleging that “Tenney is taking the valuable information he learned from Faze Clan, which he is obligated to keep secret, and using it to create a rival to Faze Clan or otherwise support rival gamers and gaming organizations.”

Tenney is very popular on the live-streaming platform Twitch and is one of the network’s most popular and subscribed-to streamers. He also happens to have more than 10 million subscribers to his YouTube Channel. Tenney initially signed with Faze Clan in April 2018. The contract specifically stated Faze Clan would receive 80 percent of all revenue Tenney made through sponsored video content on Twitch and YouTube. However, Faze Clan’s countersuit claims Tenney experienced a boost in popularity after partnering with them. This rise in online stardom is what helped him earn millions of dollars.

“Faze Clan taught Tenney how to be more than just a skilled gamer,” the countersuit reads. “Faze Clan taught him to be a professional. It schooled Tenney in the business, social media and gaming practices that have made Faze Clan successful. And he certainly has been successful. It is understood that Tenney has earned over $20 million since joining Faze Clan in April 2018, when he was earning virtually nothing.”

While both lawsuits are currently ongoing, it’s clear contracts and agreements within the esports industry will require further regulation and the assistance of experienced legal counsel in the future.

Houston Commercial Litigation Attorneys

 When a dispute arises, it can bring your entire business to a screeching halt. When this happens, your livelihood is in serious jeopardy. The commercial litigation lawyers at Feldman & Feldman have successfully handled business disputes for over 40 years. If you need legal advice regarding a business issue, contact the experienced attorneys at Feldman & Feldman today.

Contract Disputes Are The Most Common Cause Of Construction Litigation

With any construction project, there are dozens of moving parts. If just one part fails, the rest of the project can be thrown off schedule. Construction litigation can be extremely costly and time consuming, making it difficult for projects to reach completion. The most common cause of construction litigation is contract disputes, which echoes the importance of drafting thorough and specific contracts with the help of experienced construction lawyers.

According to the 2018 Global Construction Disputes Report, contract disputes are the leading cause of legal issues for the construction industry, including contractual errors and omissions, poor contract administration and contractual misunderstandings. You might think a small omission wouldn’t have a huge impact on a project, but you’d be wrong. On average, construction contract disputes take 18 months to resolve. This means projects can be slowed down dramatically by even the smallest contract issue.

Construction contracts are a common cause of disputes, because unlike other types of contracts, they are often written in real time. Every little change needs to be documented in a change order to prevent confusion; however, there are many small details that can have huge implications. This means any time there is a contract dispute, the parties involved need to immediately contact an experienced construction lawyer. The right lawyer can help resolve issues before they drag out into an 18 month long ordeal.

Start With A Solid Foundation

The best way to protect yourself from litigation is to work with an experienced contract attorney; however, not just any contract attorney will do. The construction industry is extremely nuanced, and even attorneys with the best intensions can make costly mistakes. When looking for an attorney to help you with construction contracts, you must select an attorney with prior experience in the construction industry. You will need someone with industry knowledge to protect your best interests.

Know Where To Turn To When Litigation Arises

To prevent construction disputes from getting out of hand and delaying projects, you need to know where to turn to when litigation arises. Construction litigation can be incredibly complex, and you should only turn to attorneys with a successful track record. At Feldman & Feldman, our experienced construction lawyers are well versed on matters relating to the construction industry. We have helped draft solid contracts that prevent litigation and assisted clients when disputes threatened their projects.

Houston Construction Lawyers

If you are facing any type of construction law dispute, don’t wait to contact Feldman & Feldman today. We can analyze your case and explain your legal options. Call us today to schedule an appointment.

Why You Need An Attorney To Draft Contracts

Many people conduct business without the help of an attorney. Oftentimes business dealings like transactions and agreements seem straightforward and simple to the layperson, but the reality is these matters have serious legal implications. Whether you are conducting business without a contract or are using a contract that was not drafted by an experienced attorney, you need to be aware of the risks you are facing.

Contracts Are Legally Binding

One of the many benefits of a well written contract is that it is legally binding. This means both parties will be responsible for holding up their end of the contract. Imagine what would happen to a business if a supplier stopped supplying crucial parts? The business would come to a complete stop. Contracts give both parties legal recourse when a contract is broken. Unfairly or improperly drafted contracts can bind parties to unfair terms. People that sign contracts before reading or without fully understanding them put themselves at risk of serious financial jeopardy.

Poorly Written Contracts May Not Be Enforceable

Some people may choose to write their own contracts or use generic contracts they find online, but these are fraught with problems. One of the most common problems with poorly written contracts is vague language. Contracts need to written with a level of specificity, which means generic contracts found online simply won’t do because vague terms are difficult, if not impossible, to enforce.

Poorly written contracts also often lack crucial provisions such as details on how to terminate the contract, compensation for breach of contract, and many others. Depending on your business and industry, many specific circumstances must be addressed in the terms of your contracts. If these items are not addressed, you could find yourself tangled up in costly and expensive litigation.

Houston Contract Lawyers

The Houston contract lawyers at Feldman & Feldman have extensive experience drafting all types of contracts for businesses within a variety of different industries. We can make sure your contracts are legally enforceable, outlines fair terms, and protect you from litigation. To schedule an appointment with one of our contract attorneys, contact us today.