Judge Bounces Hasbro Contract Claims In Nerf Royalties Fight

By Brandon Lowrey (December 2, 2014, 8:44 PM EST) -- A California judge on Tuesday tossed Hasbro Inc.'s cross-complaint claims alleging Imperial Toy LLC breached a contract by sidestepping an out-of-court conflict resolution process and suing for $2.8 million in allegedly unpaid royalties for certain Nerf-brand products, saying Hasbro's assertions are defenses, not claims for affirmative relief.

During a hearing in Los Angeles, Judge Steven J. Kleifield tossed Hasbro's breach of contract and breach of the covenant of good faith and fair dealing claims and denied leave to amend, saying "the court is just not accepting those theories."

Hasbro had claimed its contract with Imperial Toy specifically gives it the right...

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