Attorney Recovery Systems, Inc., assignee of Best Label Company, Inc. v. Paper N, a California Corporation dba Paper N, Inc., et al.
Published: Nov. 11, 2006 | Result Date: Sep. 6, 2006 | Filing Date: Jan. 1, 1900 |Case number: CLJ 448801 Verdict – $22,555 (including $18,746.55 principal damages, $1,858.73 pre-judgment interest, $1,000 attorney's fees per Civil Code 1717.5 and $949.20 in recoverable court costs and expenses)
Court
San Mateo Superior
Attorneys
Plaintiff
Defendant
Facts
Defendant, Paper N, ordered 45,000 bumper stickers for one of its customers from Best Label Co. via a written purchase order. Best Label delivered the stickers directly to defendant's customer and sent defendant an invoice for $26,746.55. Defendant made payments of $6,000 and $2,000, leaving a principal balance due of $18,746.55. When defendant refused to pay the balance due, Best Label assigned its claims against defendant to plaintiff, Attorney Recovery Systems, Inc., a collection agency, which filed suit against defendant.
Contentions
PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that defendant had accepted the bumper stickers and was obligated to pay for them in full. It emphasized that the defendant's customer never complained about the stickers, had fully paid defendant for the stickers, and had continued business with defendant. Neither defendant nor its customer returned the stickers. Plaintiff also contended that defendant's making of two partial payments was inconsistent with defendant's claim that the stickers were defective. Finally, plaintiff argued that defendant presented no admissible evidence to support its claim of lost business.
DEFENDANT'S CONTENTIONS:
Defendant contended that the bumper stickers were not within industry standards, not produced as specified in defendant's purchase order, and not timely delivered. Defendant therefore claimed the loss of future business totaling hundreds of thousands of dollars. Defendant further contended that as a result of the inferior goods, defendant was "black balled" in the industry.
Settlement Discussions
Less than a week before trial, defendant offered to pay the principal balance of $18,746.55 over the course of 23 months.
Result
The jury awarded plaintiff $18,746.55 in principal damages, $1,858.73 in pre-judgment interest, $1,000 in attorney fees, and $949.20 in recoverable court costs and expenses, for a total of $22,554.48.
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