Bad Rhino Games LLC v. Turn Me Up Games, Inc.

District Court, D. Kansas·Decided September 12, 2025·No. 2:23-cv-02303·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

BAD RHINO GAMES, LLC,

Plaintiff,

v. Case No. 23-2303-JWB

TURN ME UP GAMES, INC.,

Defendant.

MEMORANDUM AND ORDER

This matter is before the court on Defendant and Counterclaimant Turn Me Up Games’s motion for relief from judgment, Plaintiff Bad Rhino Games’s motion to alter judgment, and motions for attorney’s fees. (Docs. 157, 159, 160, 1651, 168.) The motions have been fully briefed and are ripe for decision. (Docs. 158, 161, 166, 167, 169.) Defendant’s motion is DENIED and Plaintiff’s motions are GRANTED IN PART and DENIED IN PART for the reasons stated herein. I. Facts and Procedural History This case involves a contract dispute between the parties where both parties presented claims of breach of contract to the jury. Bad Rhino Games, LLC (“Plaintiff” or “Bad Rhino”) initially filed suit in July 2023 alleging breach of contract for failing to pay amounts due under the parties’ agreement. (Doc. 1.) Turn Me Up Games (“TMU”) then filed a counterclaim for breach of contract asserting that Bad Rhino violated the noncompete provision in the agreement. A jury trial was held from June 23 to 25, 2025. The jury found in favor of Plaintiff.

1 Turn Me Up Games filed a supplemental motion for relief from judgment to add record citations to the memorandum after the transcript was filed. (Doc. 165 at 1, n.1.) Otherwise, it is unchanged from the original motion. At trial, both parties presented evidence regarding the contract and their relationship. The parties also stipulated to several facts which were presented to the jury and included in the jury instructions. (Doc. 154 at 4.) The contract at issue related to porting a video game (“Wayfinder” or the “game”) from its PC version to Xbox and PlayStation. Airship Syndicate Entertainment (“Airship”) was the developer of the game and Digital Extremes Ltd (“DEX”) was the publisher

of the game. As a publisher, DEX financed the development of the game. DEX and TMU had originally contracted for services relating to the game. On October 22, 2021, TMU then entered into an Independent Contractor Agreement (the “ICA”) with Bad Rhino to perform some of the work that TMU was obligated to perform for DEX. Under the agreement, Bad Rhino would be paid after performing certain milestones. Bad Rhino would submit invoices to TMU for the completion of the milestones and TMU would then submit payment for completed and approved services only. Scott Cromie testified that TMU would review the milestone, provide feedback for changes if necessary, and then submit it to DEX for payment. Once the milestone was approved, Bad Rhino could submit an invoice. The ICA provided that Bad Rhino was to be paid within 30

days of receiving the invoice. (Ex. 6 at 2.) The ICA provided that the agreement could be terminated by TMU without cause but that TMU would have to pay for certain work that was completed at the time of termination. The ICA also had a non-compete provision which prohibited Bad Rhino from engaging in business with the publisher, DEX.2 The parties later entered into a master services agreement for Bad Rhino to provide additional development work for the game after DEX had contracted with TMU for that additional work. (Ex. 1, 2.) The development work was different from the porting work that was being performed under the ICA. Development work includes the art, coding, and anything related to making and releasing a game. (Tr. at 344:18–22.)

2 The court ruled on summary judgment as a matter of law that DEX was the only publisher of the game during the performance of the ICA. (Doc. 114.) After entering into the ICA, there were typically three to four meetings a week about the work on Wayfinder. These meetings included individuals from Airship, DEX, TMU, and Bad Rhino. (Tr. at 432:12–433:7.) Bad Rhino performed its work under the ICA and TMU submitted payments to Bad Rhino in connection with services performed under specific milestones as set forth in the ICA. The parties stipulated that Bad Rhino sent invoices 210, 242, 246, and 249 to

TMU for payment but that those invoices were never paid by TMU. (Doc. 154 at 4.) Invoice 210 related to the work performed for Milestone 9 and was sent to TMU on July 20, 2022. (Ex. 15.) It was approved by TMU on July 18. (Ex. 12.) While working on the ICA, Ryan Manning of Bad Rhino testified that he took no direction from DEX or Airship. Rather, their work was directed by TMU. (Tr. at 363:11–25.) On July 29, 2022, DEX and Airship terminated their master service agreements with TMU. (Ex. 47, 49; Tr. at 87:17–89:19.) TMU also terminated the master service agreement with Bad Rhino for the development work. This was frustrating to Bad Rhino because it had hired an additional ten to twelve people to do the work on Wayfinder. Airship then emailed Manning about a potential

opportunity for work. (Tr. at 401:6–19.) Manning sent rates to Airship and learned a couple of weeks later that the work was for Bad Rhino to continue the development work directly with Airship on Wayfinder. (Tr. at 403:2–21.) On August 18, Bad Rhino and Airship signed a master service agreement with an effective date of August 1, 2022, for Bad Rhino to provide development services for the game to Airship. (Ex. 53.) Bad Rhino did not tell TMU that it entered into the agreement with Airship to do the co-development work. Bad Rhino continued to perform the porting work for TMU under the ICA. Manning testified that DEX did not direct Bad Rhino to enter into the master services agreement with Airship, had no involvement with the agreement, and did not have any input on Bad Rhino’s work under the agreement. (Tr. at 410:21–411:4.) Manning further testified that Airship and Bad Rhino used a Slack channel and another platform called Asana for the co- development work. DEX was not on the channels that Airship and Bad Rhino used to work on the development work for the project. (Id. at 411:5–23.) Further, the meetings related to the development work only included Airship and Bad Rhino.

Richard Browne also testified during trial. During the performance of the ICA, Browne was working for DEX as the Head of External Projects and was very familiar with the parties and their work on the game. Browne testified that DEX decided to terminate TMU’s development work on the game in July 2022 and turn that work over to Airship. (Tr. at 313:5–15.) Browne testified that DEX did not direct Airship to hire Bad Rhino to do the co-development work and that it was up to Airship to decide what subcontractor deals to make for the company. (Tr. at 319 at 17–24.) After Bad Rhino began doing the development work for Airship, DEX did not pay for any of the work and it did not direct Bad Rhino’s work. (Tr. at 328:14–19.) Browne further testified that DEX never entered into an agreement with Bad Rhino and did not engage in any business with Bad Rhino.3 (Tr. at 327:21–23, 328:24–329:1.)

The work related to Milestone 16 was approved on February 21, 2023, and the related invoice (24) was submitted on February 25. (Ex. 25, 28.) The work related to Milestone 17 was approved on March 30 and the invoice was submitted on April 4, 2023. (Ex. 34, 37.) With respect to the work on Milestone 18, TMU told Bad Rhino to submit its invoice for payment on April 21, 2023. (Ex. 42.) Invoice 249 was submitted on April 24 but not paid. (Ex. 44.) Ryan Manning testified that all work was completed on those milestones. Scott Cromie of TMU testified that Milestone 18 was never approved. (Doc. 162, Tr. at 74:1–8.) Upon questioning from the court,

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