Ex-RiverLink marketing firm sued for failing to pay subcontractor
New West LLC, which Kentucky hired on behalf of both states in 2014, owes $17,000 and interest to In.Mode Marketing of Louisville for managing RiverLink social media, In.Mode alleges in court documents.
LOUISVILLE, Ky. (WDRB) – A Louisville company chosen by Kentucky and Indiana officials to promote the RiverLink toll network has failed to pay at least $17,000 to a subcontractor, according to a breach-of-contract lawsuit filed this month in Jefferson Circuit Court.
New West, which Kentucky hired on behalf of both states in 2014, owes the money to In.Mode Marketing of Louisville for managing RiverLink social media, In.Mode alleges in court documents.
“Despite demand for payment, none has been made,” the lawsuit claims.
In.Mode says it submitted invoices between May and September that went unpaid, even as New West was paid for its work. An exhibit included with the lawsuit purports to show that New West received roughly $496,842 during 2017.
It wasn’t clear if that represented the full amount New West was paid last year. The states equally split the payments, according to invoices submitted by New West and obtained under Kentucky’s open records law by WDRB News before the lawsuit was filed.
Those invoices show the company billed both states for at least $589,500 from December 2016 until last November.
New West principal Carl Brazley did not return a phone call seeking comment Monday afternoon.
The Kentucky Transportation Cabinet allowed its agreement with New West to expire when it came up for renewal after three years in August.
Besides promoting the RiverLink brand before tolls on three Ohio River bridges began in late 2016, New West worked to get drivers to use transponders on the all-electronic system. Kentucky was satisfied with New West’s work, said Megan McLain, the transportation cabinet’s innovative finance manager.
Instead, the state made a “business decision to do a new procurement with a scope more appropriate for our second year of tolling,” McLain said in an email. She said it selected Louisville-based C2 Strategic Communications, which has handled public relations for the RiverLink system.
The lawsuit filed Jan. 8 is seeking payment of $17,000, plus interest, and other unspecified costs.