Decision of Interest
Dessert Beauty Inc. v. Platinum Funding Corp.
U.S. DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
Contracts
October 16, 2007
Judge Scheindlin
Read the Full-Text Opinion
DEFENDANT New Jersey firm provided factoring services to plaintiff Barbados cosmetics maker under factoring and account agreements governed by New Jersey law. Plaintiff's principal is president of its Canadian corporate parent. In addition to the factoring and account agreements the parties executed a security agreement under which plaintiff granted a security interest in its "present and future property" as collateral against its corporate parent's obligations under the agreements. Defendant withheld $573,741 from plaintiff's reserve account due to its failure to meet its $15 million "semi-annual base sales amount" specified under paragraph 9 of the factoring agreement. The court denied plaintiff summary judgment on its conversion claim. Paragraph 9 was unambiguous and provided an agreed-upon method of performance under the contract. Because the ownership of the money withheld under paragraph 9 was a disputed fact issue, plaintiff failed to establish an essential element of conversion.
No comments:
Post a Comment