Video poker company sues former laundromat owner over breach of contract

NEW ORLEANS – A video poker company claims a former laundromat owner allegedly failed to include a contractual agreement to continue to provide video poker machines on the premises in a new contract with purchasers of the laundromat.

Jazz Coin Inc. filed suit against Crunchtime Partners LLC and George Michael Favor in the Orleans Parish Civil District Court on Sept. 9.

Jazz Coin, Inc. states that on Sept. 22, 2003, it entered into a Video Poker Device-Placement agreement with Crunchtime Partners LLC. This was under the assumption that Crunchtime held a liquor license at 3338 South Claiborne Ave. in New Orleans. The agreement allowed Jazz Coin to place video poker machines at Crunchtime's address in exchange for Jazz Coin to pay 70 percent of the proceeds from those devices to Crunchtime.

The plaintiff claims George Michael Favor as “guarantor” for Crunchtime executed the agreement. The terms of the agreement were to be renewed every three years beginning on the date of “operational enrollment.” The current term or operational enrollment began on Oct. 1, 2012 and will expire on Oct. 1, 2015.

On Nov. 30, 2012, Crunchtime completed a Louisiana agreement to purchase and sell with Louder Laundromat LLC resulting in the sale of all the defendants’ assets, including 3338 South Claiborne Avenue. Jazz Coin contends this new agreement failed to include the subsequent payment Louder Laundromat would allegedly inherit from Crunchtime.

Furthermore, Jazz Coin argues Crunchtime intentionally broke its contractual obligations with the petitioner in regards to 3338 South Claiborne Avenue to avoid the outstanding debt due.

The plaintiff is represented by Lanny R. Zatzkis and Karen D. McCarthy of Zatzkis, McCarthy & Associates LLC.

The case has been assigned to Div. F Judge Christopher J. Bruno.

Case no. 2014-08850.