A US company which provided artefacts recovered from the doomed ocean liner the Titanic to be put on display at the Citywest Hotel in Dublin has sued two companies over alleged failure to pay some $1.38 million dollars for that exhibition.
RMS Titanic Inc is suing Citywest Productions Ltd, Citywest Park, Saggart, Co Dublin, and HSS, trading as the Mansfield group, in proceedings transferred to the Commercial Court today.
Rossa Fanning, for Martin Ferris, receiver of HSS, said Mr Ferris does not intend to defend the proceedings because he has no role in relation to unsecured creditors. The court also heard solicitors for Citywest Productions Ltd would be applying to come off record for that company.
In those circumstances, Mr Justice Peter Pelly said he would transfer the proceedings and would list the application to come off record for Friday next. If the case was not defended, the plaintiff could bring whatever application it considered necessary to secure judgment in default of defence, the judge said.
RMS Titanic Inc, based in Atlanta, Georgia, claims it has the exclusive worldwide rights to present exhibitions of artefacts recovered from the wreck of the RMS Titanic.
It claims it had in November 2009 agreed to grant a licence to Citywest Productions Ltd (CPL) to present a touring exhibition of artefacts at Citywest Hotel for six months beginning on December 19th 2009.
It claims the parties agreed CPL would pay the plaintiff company a non-refundable license fee of $500,000 and that the net exhibition revenues would be split on a 50/50 basis. CPL guaranteed RMS Titanic a minimum $500,000 from the net exhibition revenues, regardless of the revenue generated, it is also alleged.
CPL also agreed to provide the plaintiff with daily reports of all exhibition tickets sold and to a marketing and public relations plan with a minimum spend of €430,000, it is claimed.
The exhibition had opened on December 19th 200 and HSS held itself out at all times as wholly involved in the project and as assuming the responsibilities of CPL under the licence, it is alleged. The CEO of HSS had negotiated the terms of the licence, including the financial arrangements, it is claimed.
HSS had made payments to RMS Titanic of $100,000 in November 2009, December 2009 and January 2010 being the sums due under the licence but had not made other payments due, it is claimed.
It is also alleged the defendants failed to market the exhibition as agreed, failed to provide daily reports of all exhibition tickets sold and failed to pay additional sums due under the licence. Some $1.38 million dollars is now due and owing under the licence, it is claimed.
