Media Funding Corporation Sued For Breach of Contract, Turnover of Property and Quantum Meruit in Diversified Mercury Communications Bankruptcy Case

May 6, 2021, District of Delaware – George L. Miller, solely in his capacity as the Chapter 7 trustee (“Trustee” or “Plaintiff”) of Diversified Mercury Communications, LLC (“DMC”) and DTR Advertising, Inc. (“DTR” and, together with DMC, the “Debtors” or “Mercury Media”), brings a complaint against Media Funding Corporation (“Defendant”), to collect a debt owed by the Defendant to the Debtors, for turn over of property, breach of contract and quantum meruit.

Before the bankruptcy filings, the Debtors were a full-service direct response media agency with various businesses, including short-form, long-form, and digital advertising media businesses. Allegedly, Mercury Media, Defendant, and a third party, Nature Refined LLC, entered into an agreement, under which Mercury Media agreed to provide certain advertising, media purchasing, and related services in exchange for a certain sum to be paid by Defendant. Mercury Media apparently provided, and Defendant received, the agreed-upon services per the agreement. Defendant allegedly owed about $460,857.83 for the services.

The Trustee alleges that despite receiving invoices requesting payments, Defendant failed to make full payment of the amount owed to the Debtors’ estates. Thus, according to the complaint, Defendant allegedly breached the agreement by failing to pay Mercury Media the due amounts. The Trustee argues that the Debtors’ estates were damaged by Defendant’s failure to pay for the rendered advertising services and the Defendant’s breach of agreement was a substantial factor for causing harm to Mercury Media.

Through its complaint, Plaintiff seeks the entry of a judgment holding Defendant liable to Plaintiff for $460,857.53, plus Plaintiff’s reasonable attorney’s fees, costs, and expenses, plus pre-and post-judgment interest from the date of each breach of the agreement by Defendant, plus such other and further relief as this court may deem just and proper.

The case is In re Diversified Mercury Communications, LLC in the United States Bankruptcy Court for the District of Delaware, jointly administered under Case No. 19-10757-KBO. The law firm of Archer & Greiner P.C. is representing the Trustee and Honorable Judge Karen B. Owens is presiding over the Debtors’ bankruptcy cases.

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