CHARLOTTE, NC – LendingTree, a subsidiary of Tree (Nasdaq:TREE), is suing Moretech Inc. for what it says is a contract violation. Moretech is partnering with Google (Nasdaq:GOOG) on testing a new Google mortgage service.

LendingTree says Moretech, which developed a technology for automating automating lender offerings, is contractually obligated to provide its data to LendingTree.

In a statement, Doug Lebda, LendingTree foudner and CEO, said, “We will vigorously protect our contractual rights, our company, our customers and our clients in this matter.”

Google issued a written statement saying it is working on a small ad unit test involving a limted numbger of mortgage related services.

The search giant said it does not speculate on future services it might offer, however.

LendingTree maintains Moretech “violated its contractual covenants by partnering with Google to launch an online mortgage loan aggregator service similar to LendingTree.”

LendingTree also said it tried to settle the dispute amicably prior to suing.

A court hearing is scheduled for Sept. 2.

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