CedarCreek Systems Advances in Legal Battle Against BirchStreet Systems Over Reseller Agreement Breach

CedarCreek Systems, a reseller specializing in Procure-to-Pay (P2P) solutions for the club and resort industry, has advanced to the discovery stage in its lawsuit against BirchStreet Systems in Orange County Superior Court. The case centers on a breach of their reseller agreement by BirchStreet, the market leader in P2P software for the hospitality industry. The legal action documents BirchStreet's numerous violations of the agreement, including arbitrary price hikes, the failure to compensate CedarCreek with agreed-upon rebates, and an abdication of customer support responsibilities across the board.

In support of CedarCreek's claims, an Orange County Superior Court judge has ruled that CedarCreek's allegations against BirchStreet were sufficient to allege a breach of the companies' reseller agreement, overruling BirchStreet in its attempt to have the case dismissed before discovery and trial.

The ruling specifically highlighted CedarCreek's allegation that BirchStreet unilaterally increased the price of scanners sold to CedarCreek by 35% in violation of negotiated pricing set forth in the reseller agreement. The judge noted that the agreement specifically stated that such changes "will be accepted only by mutual agreement in writing."

CedarCreek's complaint claims the following causes of action:

• Breach of Written Reseller Agreement: BirchStreet breached the reseller agreement by failing to perform its obligations under the agreement. This includes increasing prices to CedarCreek, failing to compensate CedarCreek with rebates, failing to pass on leads to CedarCreek, and contracting directly with end customers that it was obligated to pass on to CedarCreek.
• Breach of Implied Covenant of Good Faith and Fair Dealing: BirchStreet breached the implied covenant of good faith and fair dealing by acting in a way that was contrary to the purpose of the reseller agreement and the parties' reasonable expectations. This includes the deactivation of CedarCreek customers and refusal to support CedarCreek's requests for service. BirchStreet's actions have led in some cases to end customers terminating their relationships with CedarCreek.

Nicholas Wilhelm, CEO of CedarCreek Systems, expressed satisfaction with the court's decision to proceed with the case, stating, "This ruling underscores the seriousness of our claims and reinforces our resolve to seek justice and fair treatment for our company and our clients. It's truly shocking how BirchStreet has abdicated its responsibilities not only to CedarCreek, but to customers in the club and resort industry who rely on BirchStreet software to do business."

Despite the challenges presented by BirchStreet's breach of contract, CedarCreek Systems remains dedicated to its mission of delivering top-tier solutions to the club and resort industry. Amid the ongoing legal process, the company continues to focus on providing unparalleled service and support to its clients, reinforcing its position as a trusted leader in the market.

CedarCreek Systems has been a key player in marketing and implementing BirchStreet's Purchasing and Payment technology for more than a decade. The partnership between CedarCreek and BirchStreet has been instrumental in providing efficient P2P solutions to private clubs across the United States.

BirchStreet markets and serves hotels, casinos, airports, stadiums, and restaurants globally. Customers include Hilton, Marriott, Four Seasons, Hyatt, Wynn Resorts, Aramark, Sodexo, Delaware North, and TAO Restaurants. CedarCreek clients served through its partnership with BirchStreet include Congressional Country Club, Baltusrol Golf Club, The Olympic Club, Kemper Sports, and Troon Golf.

About CedarCreek Systems

CedarCreek is the leading end-to-end inventory, invoicing, and payment solution in the club and resort industries. Cloud-based since inception, CedarCreek has the largest integrated supplier network in hospitality ranging from F&B, Agronomy, Retail, Housekeeping, and Maintenance/Engineering. Powered by BirchStreet, CedarCreek deploys solutions tailored to the operation's size with the universal goal of improving controls, reducing cost, and establishing efficiencies.