O'Brien Industries v. Munchkin, Inc.
Published: Nov. 9, 1996 | Result Date: Oct. 8, 1996 | Filing Date: Jan. 1, 1900 |Case number: BC126670 – $54,968
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Facts
Plaintiff O'Brien Industries Inc. "OBI" distributes point of sale packaging materials. Defendant Munchkin Inc. manufactures products that are sold to retail. In distributing its product, the product is packaged utilizing packaging materials supplied by OBI. OBI prepared a supply contract that provided for purchases of product with automatic reorder provisions. Munchkin allegedly instructed OBI to have at least 500,000 cartons for each of certain brands of product available for immediate shipment. Munchkin agreed to pay for sufficient production so that a minimum of 500,000 cartons, for each brand, would be on hand at all times. Under the contract, Munchkin would instruct OBI, periodically, to provide it with a specific number of cartons and OBI in turn would instruct the manufacturer of the cartons, which is located in Utah, ship from its inventory, the number requested by Munchkin. Per the defendant, under the contract, Munchkin had the right to discontinue purchasing product from OBI. Defendant Munchkin claimed it began having financial difficulties as a result of the January 1994 earthquake. On June 6, 1994, Munchkin directed a letter to OBI complaining about its financial condition and asking for forbearance by OBI. Munchkin claimed it exercised its right to discontinue purchasing product and at that time OBI contended it was due $54,969 for product manufactured for Munchkin. Munchkin then claimed that OBI had breached the contract by causing the manufacturer to produce too many cartons. Munchkin's president, defendant Steve Dunn, signed a written guarranty of Munchkin's obligations to OBI. The plaintiff brought this action against the defendants, Munchkin, and Steve Dunn based on breach of contract theories of recovery.
Settlement Discussions
The plaintiff made a settlement demand for $45,000. The defendant made an offer of compromise for $29,500.
Damages
The plaintiff claimed $54,969 in damages.
Injuries
The plaintiff claimed $___________ in damages.
Other Information
The verdict was reached approximately one year and five months after the case was filed. The plaintiff claimed that several days before trial, defendant Dunn claimed that due to a typographical error in the written guaranty, he was not liable on it. The court determined that OBI had followed the reorder provisions in the contract and awarded judgment to the plaintiff and against Munchkin. The court also awarded the plaintiff judgment against Dunn, who had personally guaranteed Munchkin's obligation.
Length
2 days
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