GMB sues packaging firm for $67 000

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THE Grain Marketing Board (GMB) has taken a local packaging company, UPC t/a Universal Packaging Company, to the High Court seeking a $67 093,91 refund after cancelling a contract, accusing the packaging firm of a contract breach.

BY CHARLES LAITON

gmb

According to GMB, on September 3, 2014, it entered into a contract with UPC wherein the latter was allegedly supposed to deliver 500 000 by 10kg silo roller meal empty bags, 50 000 by 2kg samp empty bailer bags and 50 000 by 2kg rice empty bailer bags.

The material terms of the three contracts GMB said, included among other things that the purchase price of the silo roller meal empty bags was $166 750 and that GMB would pay 50% of the purchase price as a deposit in order for the delivery to be effected.

It was further agreed that the balance of $83 375 was to be paid after delivery of the packaging material on or before October 10, 2014 and that GMB was also supposed to pay $29 799,96 as the purchase price for the samp empty bailer bags and the rice empty bailer bags.

“On September 17, 2014, the plaintiff (GMB) paid a deposit in the sum of $83 375 in respect of packaging material under order number 5500019237 and the defendant only delivered empty bailer bags worth $16 281,99,” GMB said.

“In breach of the contract, the defendant failed to deliver the remainder of the packaging material to the plaintiff. The plaintiff retained the value of the delivered packaging material in the sum of $16 281,99 as set-off for the paid-for, but undelivered packaging material leaving an outstanding balance of $67 093,91 due and payable.
“Plaintiff cancelled all the three contracts pursuant to breach by defendant and demanded payment of damages for the breach.”

On the April 12 GMB said, UPC signed an acknowledgement of debt acknowledging its indebtedness.

“The defendant has despite demand, acknowledgement of debt together with undertaking to pay failed, refused and/or neglected to pay the sum of $67 093,91 being the value of the outstanding packaging material, and collection commission in the sum of $3 404,65 including interest.”

UPC has since entered an appearance to defend notice.