Dippy Foods Inc. v. Meat Packers & Butchers Supply Co.
Published: Aug. 19, 2003 | Result Date: May 15, 2003 | Filing Date: Jan. 1, 1900 |Case number: BC274276 Verdict – $15,500
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
George T. Kelly
(Law Offices of George T. Kelly)
Defendant
Facts
On Aug. 4, 1999, Cypress-based Dippy Foods Inc. and L.A.-based Meat Packers & Butchers Supply Co. entered into a contract that provided for the purchase of a Multivac Model R5100 horizontal form and fill vacuum packaging machine, as well as tooling to be installed on the machine. The total purchase price for the machine as stated in the contract was $166,904. The machine was stored at Meat Packer's facility in Dartmouth, Mass. and required extensive refurbishing and customized tooling. The machine was to be shipped to Dippy Foods nine weeks after payment of the second down payment on Nov. 19, 1999. In April 2000, the machine was shipped to Meat Packer's warehouse in Los Angeles, assembled and tested. Until January 2001, the machine underwent several modifications and was retooled in order to meet Dippy Foods specifications. Meat Packers claimed the machine was ready for delivery in January 2001. Dippy Foods never accepted the machine as conforming and demanded the return of its down payment in the amount of $80,000. The original contract contained a $300 per day fee for late shipment. From October 1999 to June 2001, Meat Packers also leased a packaging machine to Dippy Foods for a monthly rent fee of $1,000, including tax. According to Meat Packers, Dippy Foods failed to make all the required payments for the rental machine. Dippy Foods sued Meat Packers, alleging breach of contract for the sale of goods pursuant to UCC Section 2711(1), breach of implied covenant of good faith and fair dealing, fraud and intentional misrepresentation. Meat Packers cross-complained against Dippy Foods, alleging breach of contract, common counts and breach of lease and account stated. Dippy Foods contended that Meat Packers misrepresented its ability to deliver a refurbished Multivac Model R5100 horizontal form and fill vacuum packaging machine that performed according to Dippy Foods specifications. Meat Packers contended that Dippy Foods breached the contract by failing to pay the balance of the purchase price for the machine prior to delivery.
Settlement Discussions
Dippy Foods demanded $75,000. Meat Packers offered to pay $50,000 to Dippy Foods upon sale of the machine, which was in Meat Packers' possession.
Specials in Evidence
$8,755
Damages
Dippy Foods alleged damages in the amount of $80,000, which represented the down payment paid toward the purchase price of the machine, a late fee of $300 per day for late shipment as stated in the contract, and punitive damages. Meat Packers claimed damages for unpaid rent and the cost of repair for a separate packaging machine it had rented to Dippy Foods in the amount of $42,794.
Injuries
As a result of the dog bite, plaintiff required stitches in her cheek and has permanent scars and redness on her face. She suffered severe emotional distress and is now afraid of dogs. She is afraid to be alone yet feels scared about relating to people.
Result
The jury awarded $15,500 to Dippy Foods as a refund of a portion of its deposit. The jury awarded $15,500 to Meat Packers for unpaid rent.
Deliberation
one day
Length
six days
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390