Gordon Rees Scully Mansukhani attorneys Patrick Tobia, Peter Siachos, and Jolene Sproviero obtained summary judgment in the United States District Court, Southern District of New York, in a breach of contract lawsuit in which the firm’s client engaged in the purchase of meat products from a New York company, which accused the business of failing to pay plaintiff for over $750,000 worth of purchases.
The plaintiff, a wholesaler of food products, alleged that the firm’s client, a Mexican business, failed to pay for 39 invoices over the course of a year from 2013-2014 totaling $750,000. The plaintiff asserted breach of contract claim, breach of implied contract, promissory estoppel, and unjust enrichment claims. The plaintiff argued that it never received payments for the invoices. Our client offered proof of cash payments to the plaintiff’s agent, who then stole the money by allegedly failing to provide the cash to plaintiff. The agent was fired for theft, although the plaintiff argued that the firing was not related to the disputed payments. The plaintiff argued that the contract terms contained on the credit agreement and the invoices did not allow for payments by cash. The plaintiff also challenged the client’s proof of cash payments, further arguing that even if the company had paid the agent, this payment method was not authorized by the contracts at issue. Additionally, plaintiff contended that since it never received the payments, the risk of loss under the contract and the UCC law fell on the client. Accordingly, plaintiff contended that the client was required to pay the invoices a second time.
The plaintiff’s agent, who stole the payments, died prior to being deposed, but provided a sworn statement under Mexican law attesting to the cash payments made by the firm’s client. The plaintiff challenged the validity and admissibility of the agent’s sworn declaration, moving to strike it from the case. The case was further complicated by the challenges to the validity of the affidavit (in light of the agent’s death and unavailability as a witness) and the translation of documents. The parties filed cross-motions for summary judgment, which were considered by the Hon. Ronnie Abrams, U.S.D.J. The Court agreed with the firm's arguments on behalf of the client, finding that the deceased agent’s Mexican declaration and the translated documents could be validly considered by the Court. The Court then granted summary judgment and denied plaintiff’s motion to strike and for summary judgment, and terminated the case. Both the client and Gordon & Rees were thrilled with this hard-fought victory in this years-long dispute.