ZColo Sues ITP for $95,000 Owed Under Settlement Agreement

IT services firm Information Technology Partners (ITP) owes network infrastructure company zColo $95,000 as part of a $175,000 settlement agreement the companies entered into July 15, alleged zColo's complaint Wednesday (docket 1:24-cv-01276) in U.S. District Court for Colorado. The settlement agreement resolved claims zColo previously asserted against ITP for failing to pay for services the plaintiff provided, but ITP hasn’t paid the full amount, the complaint alleged. The defendant failed to pay $1,921,685.74 to zColo, due under eight invoices dated between Aug. 1, 2021, and May 16, 2022, comprising $316,967.04 for services zColo already provided and $1,604,718.70 for the value of the services called for under the remainder of the agreement, said the complaint. Under the agreement, ITP was obligated to pay for the remainder of the order term upon early cancellation of the agreement, but it “terminated zColo’s services early and refused to compensate” it for services the plaintiff already provided and the remaining value of the agreement, said the complaint. The plaintiff filed a breach of contract suit Nov. 8, 2022, and entered into the settlement agreement Jan. 18, 2023, under which ITP agreed to pay $175,000 by July 15, 2023. The defendant made four payments totaling $80,000 but has failed to pay the remaining amount due, it said. The breach of settlement complaint seeks amounts owed zColo, plus attorneys’ costs and legal fees.