Facts

In 1997, plaintiff Kwesi Amoafo-Yeboah sued defendants Kofi Amoah a.k.a. John Amoah, and Progeny Ventures Inc. That case settled under a stipulated judgment in 2000, with Amoah agreeing to keep the business, but share the commissions it received from African banks. Amoafo-Yeboah claimed that Amoah subsequently reneged on the agreed-upon commissions.

In 2007, Amoafo-Yeboah sued Amoah and Progeny Ventures once again alleging breach of contract and fraud, seeking declaratory relief under the 2000 stipulated judgment.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that there were still valid contracts earning commissions for Amoah and Progeny Ventures covered in the 2000 stipulated judgment, and that he was entitled to his share. Plaintiff further contended that the contracts did not expire because they are written to continue in perpetuity for as long as the banks are still doing Western Union money transfers, and evidence proved that the banks are still in the Western Union money transfer business.

DEFENDANTS' CONTENTIONS:
Defendants contended that there were still contracts, but that those contracts were "new" and not the same contracts settled under the 2000 stipulated judgment.

Damages

Amoafo-Yeboah claimed loss of commission stream from business contracts valued at approximately $7 million.

Result

The court found that the money transfer between Western Union and the banks never ceased and that the contract between defendants and the banks renewed contemporaneously with the renewal of the underlying agency agreements between the banks and Western Union. Further, that the parties' original contract to share commissions was carried over with the banks' contracts with Western Union. Therefore, as long as the banks were in the Western Union money transfer business, even with "new" contracts, defendants were required to share their commission under the 2000 stipulated judgment. Plaintiff was awarded $4,525,883 after an accounting, which included commissions, interest, and penalties.

Other Information

Neutral: Sherman Smith, Jr. (JAMS), accounting referee.