Monro Muffler, IT firm Kriterium clash in state court

Monro Muffler Brake Inc. and Rochester IT firm Kriterium LLC are at odds and battling it out in court, both companies said Friday.

Last week Monro filed a complaint in state Supreme Court alleging breach of contract and fraud against Kriterium. Monro asserts Kriterium and its president and CEO, Todd Cameron, failed to provide certain technology-related services, software licenses and hardware for which Monro had contracted and made full payment.

Monro’s lawsuit seeks monetary and punitive damages.

According to a complaint filed by Kriterium on Thursday in state Supreme Court, Monro owes Kriterium $100,000 for services and hardware, as well as equipment that has not been returned. The suit seeks damages and the return of the equipment.

Cameron said the company was pursuing the lawsuit reluctantly, given its eight-year relationship with Monro.

“We have tried to resolve this dispute for nearly a year, but Monro refuses to pay for services and equipment that we provided and that Monro continues to use,” Cameron said in a statement. “As a result, we have been forced to take legal action as a last resort, on behalf of our employees and their families.”

Catherine D’Amico, Monro executive vice president and chief financial officer, said the company’s investigation indicated Kriterium did not intend to fulfill its contractual commitments, accepted payments without delivering products and services, and “actively concealed its wrongdoing.”

“Needless to say, we stand by the allegations set forth in the complaint that we filed last week,” D’Amico said in an email. “Kriterium’s newly filed complaint appears to be another attempt to deflect attention from its own wrongdoing.”
 
Kriterium is being represented by Peter Glennon of the Glennon Law Firm P.C. Kriterium has nine employees at its Blossom Road facility.

“Our decision to commence this lawsuit did not come lightly, and we will pursue these claims vigorously,” D’Amico said in a statement.

On Thursday Monro reported record second quarter financial results and announced the acquisition of nine stores in the Atlanta area. Shares of Monro stock (Nasdaq: MNRO) closed at $48.14 yesterday and were up 13 cents to $48.27 in early afternoon trading.

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