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Note 22 - Legal Proceedings
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Legal Matters and Contingencies [Text Block]
22.
  
Legal Proceedings
 
The Company
may
be party to certain lawsuits or claims arising in the normal course of business. The ultimate outcome of these matters is unknown but, in the opinion of management, we do
not
believe any of these proceedings will have, individually or in the aggregate, a material adverse effect upon our financial condition, cash flows or future results of operation.
 
In
July, 2017,
God's Little Gift, Inc. (d\b\a) Helium and Balloons Across America and Gary Page (“Claimants”) filed an action against the Company based on disputed compensation amounts over several years. This action was resolved by mutual agreement between the parties during
January 2019.
Mr. Page received
20,000
shares of CTI common stock,
$5,000
in cash, and a minimum payout in his monthly royalty calculation of
$7,667
beginning
March 1, 2019
and ending
August 1, 2021.
The Company accrued the
$0.3
million in committed costs under this settlement in its
December 31, 2018
financial statements.
 
FedEx Trade Networks Transport and Brokerage Inc. v. CTI Industries Corp.
, Case
No.
20
L
46,
was filed on
January 27, 2020
in the Circuit Court of the
19
th
Judicial Circuit, Lake County, Illinois.  The complaint for breach of contract sought
$163,964.75
in damages, plus interest and court costs. On
October 15, 2020,
the case was dismissed with leave to reinstate pursuant to settlement. The settlement calls for the payment of
$100,400.00
in monthly installments of
$10,000
per month for a period of
ten
(
10
) months and with the last payment being in the amount of
$10,400.
The
first
payment came due and was made on
October 30, 2020,
and payments have been made monthly. The Company accrued the
$0.1
million in committed costs under this settlement in its
December 31, 2020
financial statements.
 
Airgas USA, LLC v. CTI Industries Corp.
, Case
No.
01
-
20
-
0014
-
7852
was filed with the American Arbitration Association on or about
September 8, 2020.
The claim seeks
$212,000,
plus interest, attorneys' fees and costs for breach of contract. Claimant agreed to give CTI an extension to respond to the claim so the parties could attempt to resolve. On
February 10, 2021,
Airgas accepted CTI's offer to pay
$125,000
over
10
months. Airgas is preparing a settlement agreement for CTI's review and the arbitration will be dismissed upon signing. The Company accrued the
$0.1
million in committed costs under this settlement in its
December 31, 2020
financial statements.
 
On
October 19, 2020,
Jules and Associates, Inc. sent CTI a demand letter related to the lease of certain equipment. The letter demanded
$65,846.99
for alleged past due amounts under the lease as well as a return of the equipment. Discussions regarding the return of the equipment are ongoing and
no
lawsuit has been filed. The ultimate resolution of this demand is
not
anticipated to materially impact the financial statements. On
April 5, 2020
Jules & Associates, Inc. filed and served on CTI a demand for arbitration with JAMS related to the lease of certain equipment.  The demand requests
$98,244.55
for alleged past due amounts under the lease as well as a return of the equipment or its fair market value. The Company accrued the
$0.1
million in committed costs under this settlement in its
December 31, 2020
financial statements.
 
On
October 19, 2020,
Redwood Multimodal sent CTI a demand for the withholding of payment in the amount
$98,960.88
for loads brokered by Redwood. Settlement discussions are ongoing and
no
lawsuit has been filed. The ultimate resolution of this demand is
not
anticipated to materially impact the financial statements. The Company accrued the
$0.1
million in committed costs under this settlement in its
December 31, 2020
financial statements.