As demonstrated in a recent lawsuit filed by Ashton Kutcher’s production company Katalyst Media, Inc., merely “changing your mind” does not entitle you to breach a contract, even if you are the California Department of Motor Vehicles. Katalyst Media has filed a breach of contract lawsuit against the California Department of Motor Vehicles relating to a proposed reality television show. Mr. Kutcher’s company alleges that the Department of Motor Vehicles later changed its mind and breached the agreement between the parties.

As part of its claim, Katalyst Media alleges the following facts:

  • Katalyst Media and the Department of Motor Vehicles began negotiating a new reality television show in early 2010.
  • In June of 2010, the Department of Motor Vehicles and Katalyst Media entered into a written collaboration regarding the project.
  • In May of 2011, the two parties entered into a formal written contract wherein the Department of Motor Vehicles agreed to give Katalyst Media access to the facilities and employees for the show.
  • Six weeks after signing the contract, the Department of Motor Vehicles changed its mind and sent a letter stating that it would not be fulfilling its obligations under the agreement.

Mr. Kutcher’s company further alleges that it has been harmed as a direct result of the Department of Motor Vehicles decision not to fulfill its obligations. The company points to money spent on pre-production activities as evidence of these damages, including money spent on casting, preparing budgets, and negotiating contracts. If the court agrees with Katalyst Media’s claims, the Department of Motor Vehicles may be liable for nearly $1,440,000, as well as interest and legal fees.

If you entered into an agreement and the other party committed a breach of New York contract by changing its mind and failing to fulfill its obligations, you need the guidance of an experienced business litigation attorney. Contact a New York breach of contract lawyer today at (888) 497-3410 for a free consultation. 

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