Adcorp Australia has announced it has commenced legal proceedings against Dentsu Mitchell in the NSW Supreme Court over a dispute involving its role in working on the federal government’s media account.
According to a statement to shareholders, Adcorp said it is seeking damages “arising from the termination of services that Adcorp was providing to Dentsu Mitchell in the context of Dentsu Mitchell’s role as the principal contractor under the federal government’s master media agency contract (MMA)”.
“Adcorp also claims payment for unpaid invoices in the context of the provision of these services,” the statement said.
The federal government’s MMA contract commenced in July 2014. Prior to this, Adcorp had been providing non-campaign services to the government since 2008.
However, from July 2014, the previous campaign and non-campaign contracts were combined within the one contract, with services being performed by both Adcorp and Dentsu Mitchell.