Tennessee business litigation news: Office Depot sued for $217 million!
Legal news for Tennessee business litigation attorneys. Nukote International sued Office Depot for breach of contract.
Tennessee business litigation attorney alert- Nukote International Inc. filed a lawsuit against Office Depot for breach of contract.
Nashville, TN—A Texas-based manufacturer of printer cartridges filed a lawsuit against Office Depot for $217 million. The lawsuit, which was filed U.S. Bankruptcy Court in Nashville on Tuesday, September 8, 2009, claims Office Depot breached several business agreements, as reported by the Democrat Chronicle.
Nukote International Inc., which manufactures and distributes ink-jet and laser-toner cartridges, filed Chapter 11 bankruptcy and is blaming their bankruptcy on Office Depot. The lawsuit alleges the Florida-based Office Depot started to withhold payments to Nukote, while Office Depot continued to promise the company they would get paid and to continue to ship the products. In May, Office Depot, which accounted for 40 percent of Nukote’s sales, ended its 20-year business relationship with the Texas manufacturer. Office Depot then began a new business relationship with Clover Technologies Group LLC, based in Ottawa, Ill. Nukote claims Office Depot breached their contract by obtaining a new supplier for printer cartridges.
The Nashville Post released a statement by Office Depot stating, “Nukote was significantly past due on amounts owed to Office Depot and, in fact, Office Depot still holds a significant receivable balance for Nukote. Indeed, it is not Office Depot that is indebted to Nukote, but it is Nukote that is indebted to Office Depot.” The lawsuit is seeking to recover $15 million in lost profits, $12 million in damages, and $190 million in punitive damages.
Legal News Reporter: Nicole Howley-Legal news for Tennessee business litigation lawyers.