CHICAGO (CN) – The printer of Martha Stewart Living magazine claims the media company owes it $7.7 million for forcing it to offer a price discount not in its contract.
R.R. Donnelley & Sons sued Martha Stewart Living Omnimedia on Tuesday in Cook County Court.
Donnelley claims it entered into a contract with Martha Stewart Living for printing and production of two Martha Stewart magazines in 2006 – Martha Stewart Living and Martha Stewart Weddings.
The contract “guaranteed Donnelley $28.6 million in manufacturing revenue through the term of the agreement, i.e. June 30, 2017,” according to the brief complaint.
But Donnelley claims that last year Martha Stewart Living entered into a new advertising and circulation contract with Meredith Corporation, which is not a party to the lawsuit, and told Donnelley that Meredith would not honor the pricing terms of the printing contract.
“Consequently, Donnelley has been forced to provide Meredith with a pricing discount, not only on the MSLO magazines, but on additional publications that Donnelley is printing for Meredith in order to mitigate its damages and retain its work printing the MSLO magazines,” the complaint says, abbreviating Martha Stewart Living Omnimedia.
The discount will cost Donnelley $5.6 million on the Martha Stuart magazines through June 2017, and $2.1 million on non-Martha Stewart magazines through 2022, the printer says.
“MSLO has breached the agreement by refusing to compensate or agree to compensate Donnelley for the lost profits,” Donnelley claims.
It seeks $7.7 million for breach of contract.
It is represented by Jeffrey Widman with Shaw Fishman Glantz & Towbin.
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