ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

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Tuesday, January 18, 2011

$75 Million Suit Against the Kardashians

KK This blog has thus far been completely Kardashian free.  Is that because we are too highfalutin to cover contracts involving reality television?  Probably not, as this post should attest.  As best as we can piece thing together form reports on the suit, such as this one from CNN, the Kardashian sisters, Kim (pictured), Khloe and Kourtney, endorsed a pre-paid credit card, the Kardashian Kard.  Given their family's attachment to the eleventh letter of the alphabet, they could have called it the KKK Kard, but nobody ever listens to our marketing ideas for some reason.  In any case, the sisters withdrew their endorsement of the "Kard" when it was criticized for predatory fees.  CNN reports that debit cards usually come with monthly maintenance fees that average $13, while a 12-month "Kard" would cost about $100.  There were additional costs -- $1 for adding money to the card; $1.50 to speak with a live operator, even though that operator would not be a Kardashian; $2/transaction to pay bills with the card.  We at the blog do not know what the Kardashians want to be known for, but it is apparently not predation.

The Revenue Resource Group (RRG) is suing the sisters, their mother and their LLC, seeing to recover the $75 million it expects to lose as a result of the sisters' alleged breach of contract.  As RRG's attorney put it, "With the Kardashians' star power, the amount of cards they would have sold would have been off the chart."  RRG also seeks to recover $500,000 in out-of pocket expenses, which includes the $65,000 the company apparently spent on a "launch party."  The sisters reportedly were not the lives of the party, as they tried to leave early, only returning when their mother was called in to bring them back, and spending much of the evening huddled in a corner sending text messages via iPhones.

That last part of the story is not very credible, since iPhones don't really work for such purposes, as Jon Stewart illustrates in this clip.  While we're on the topic of iPhones, check out how to walk away from your AT&T contract here.

[JT]

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Comments

Informative Article, they shouldn't had charged that much for a card on average $13 for a card and there always on their phones even on the show im not shocked thanks for the share.

Posted by: Karen the Classifieds girl | Jan 20, 2011 2:52:51 PM

Wow, you actually get to watch them talk on their cell phones on their TV show! That sounds too interesting to pass up because real life just does not provide enough opportunities to overhear one side of other people's telephone conversations.

Posted by: Jeremy Telman | Jan 20, 2011 4:13:27 PM

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