CUES was sued by an Iowa-based training company for breach of contract, according to recently filed court documents.

The suit, filed July 6 in Iowa District Court by Cedar Rapids-based BVS Performance Solutions, alleged CUES dodged obligations to perform "certain marketing activities" under an arrangement dating back to 2011. BVS, which provides staff training and member education services, is seeking unspecified damages and asked the court to let it out of its contract with CUES.

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Because the contract contained a confidentiality provision, public records did not include a copy of the contract, contract details or requirements of both parties.

BVS did allege, however, that "CUES failed and refused to perform the marketing activities required under the contract, or performed them so poorly as to constitute a material breach of contract," according to court documents.

The dispute was apparently brewing for years. After making at least one complaint to CUES about the breach, CUES didn't hold up its end of the contract, BVS said in the court documents. That entitled BVS to terminate the contract, it said.

BVS then filed suit over the matter in June 2014, according to the filings. Once that happened, it said, a former CUES president/ CEO agreed to work to resolve the dispute and persuaded BVS to drop the suit after it moved to federal court. However, the terms of that new agreement were never finalized, and CUES' new president/CEO indicated he won't honor them, BVS said in its complaint.

The new suit did not name which former CUES president and CEO was party to the negotiations. Charles Fagan led the professional-development organization from January 2013 to April 10 of this year. He was replaced by John Pembroke. Before Fagan, Fred Johnson led the organization for 23 years.

CUES, which is based in Madison, Wis., denied the allegations and filed a counterclaim for unspecified damages, according to the court documents. In its July 29 response, it acknowledged it engaged in settlement negotiations regarding the June 2014 suit and said the unnamed CUES president/CEO did leave the organization without reaching a settlement agreement with BVS.

However, it denied the new president and CEO has refused to honor the negotiated agreement.

CUES also alleged BVS breached the contract when it stopped paying CUES in April 2014. It still has not paid CUES what it is owed under the contract, it added.

"BVS has clearly demonstrated that it will not cure its past failures to pay the amounts due to CUES and will not make future payments it would owe CUES under the Master Agreement," CUES said in its counterclaim. "Since April 1, 2014, and up to the present date, CUES has continued to fully and faithfully perform its limited duties under the Master Agreement, despite BVS' failure to do the same,"

"We feel strongly the position we are taking on this issue will prevail. We deny CUES has breached any agreement with BVS. It is our policy not to discuss the details of pending litigation," CUES CEO John Pembroke told CU Times. 

BVS President Roy Karon said he was unable to comment on ongoing legal matters.

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