As a June 3, 2019, ruling by U.S. District Court makes clear, contract disputes between ISOs and sales channel partners can be lengthy and expensive, especially those involving termination for cause. At issue is a contractual disagreement between Cleveland, Ohio-based Francis David Corp., d/b/a Electronic Merchant Services (EMS), and EMS channel partner Infinity Capital LLC and John Paul Golino, d/b/a Choice. The parties disagreed about residual payments and operating terms, according to court documents.
In rendering his opinion, U.S. District Court Judge James S. Gwin, Northern District of Ohio, noted that Choice joined EMS in 2010 and became a top producer for the ISO. Disputes can be traced to 2016, when the parties renegotiated their agreement.