Goal Zero LLC v. LCG Holdings LLC

CourtDistrict Court, D. Puerto Rico
DecidedJuly 6, 2026
Docket3:23-cv-01488
StatusUnknown

This text of Goal Zero LLC v. LCG Holdings LLC (Goal Zero LLC v. LCG Holdings LLC) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goal Zero LLC v. LCG Holdings LLC, (prd 2026).

Opinion

1 IN THE UNITED STATES DISTRICT COURT 2 FOR THE DISTRICT OF PUERTO RICO

4 GOAL ZERO LLC,

5 Plaintiff, 6 CIVIL NO. 23-1488 (SCC) (HRV) v. 7 8 LCG HOLDINGS LLC,

9 Defendant-Counterclaimant.

11 OMNIBUS MEMORANDUM AND ORDER 12

13 The following motions have been referred to me for disposition: Plaintiff Goal 14 Zero LLC’s (“Goal Zero”) “Motion to Compel Responses to Interrogatories” (Docket No. 15 135); Goal Zero’s “Motion to Compel Responses to Goal Zero’s Request for Production of 16 Documents” (Docket No. 146); and LCG Holdings LLC’s (“LCG”) “Motion to Compel 17 Responses to Interrogatories and Production of Documents” (Docket No. 157). For the 18 reasons set forth below, the motions are GRANTED in part, DENIED in part and MOOT 19 20 in part. 21 I. FACTUAL AND PROCEDURAL BACKGROUND1 22 The complaint, filed on September 28, 2023 (Docket No. 1), alleges in sum and 23 substance that on November 5, 2020, Goal Zero and LCG entered into a distribution 24 25 26 27 1 These facts are drawn from the complaint (Docket No. 1), the amended counterclaim (Docket No. 61), and the parties’ joint ISC memorandum. (Docket No. 48). 28 1 1 agreement under which LCG would distribute Goal Zero’s portable power and renewable 2 energy products in Puerto Rico on an exclusive basis. Pursuant to the terms of the 3 agreement, LCG would issue purchase orders (“POs”) to acquire products from Goal Zero. 4 The agreement contemplated that once POs were sent by LCG, Goal Zero would issue pro 5 forma invoices matching the details of said POs. It was also agreed that once issued, these 6 7 pro forma invoices would amount to an acceptance of the orders. Further, at least as 8 initially understood, payment on invoices was due before shipment. LCG was also 9 obliged to comply with all other terms and conditions specified by Goal Zero’s invoices. 10 Any failure to comply with terms and conditions, or to remedy any breach, allowed Goal 11 Zero to terminate the distribution agreement for just cause. And, in case of termination 12 13 for nonperformance, LCG’s indebtedness, if any, would become immediately due and 14 payable. 15 Goal Zero alleges that LCG agreed to purchase significant amounts of product 16 from Goal Zero pursuant to several POs it issued. Goal Zero says that it approved said 17 POs and delivered products to LCG. Plaintiff also avers that it reserved inventory for, or 18 19 procured the manufacturing of, more than $11,500.000 worth of additional products. 20 However, according to Goal Zero, following delivery of the products and/or issuance of 21 the invoices covered by the POs, as the case may have been, it had to make numerous 22 collection efforts, to no avail. Goal Zero further alleges that as a result of the lack of 23 payment by LCG, it refused to tender delivery of bills of lading for shipments which were 24 in transit at the time the lack of payment issues arose and conditioned delivery of said 25 26 bills of lading on payment of the past due amounts, which allegedly never occurred. 27 28 2 1 Goal Zero additionally avers that in a good faith attempt to help LCG pay its debt, 2 a Letter Agreement was issued in relation to a specific PO, agreeing to release a portion 3 of the products held at the port of San Juan. This Letter Agreement did not release LCG 4 from its indebtedness and imposed certain obligations in relation to the products to be 5 released. Goal Zero claims that LCG failed to fully comply with the obligations set forth 6 7 in the Letter Agreement. On July 24, 2023, after having unsuccessfully and repeatedly 8 requested payment on the pending invoices, Goal Zero issued written notice to LCG 9 terminating their exclusive distribution relationship. The termination notice was 10 prompted by LCG’s alleged failure to comply with its payment obligations and for actions 11 and omissions in the distribution and marketing of the products that adversely and 12 13 substantially affected Goal Zero’s interests, resulting in lost sales opportunities and loss 14 of goodwill. According to Goal Zero’s accounting records, LCG owed a principal balance 15 of $5,808,840.80 in past due amounts under the POs at issue. Goal Zero brings causes 16 of action for breach of contract and collection of monies; collection of prejudgment 17 interest; contractual damages in an amount of no less than $11,600,000; and seeks a 18 19 declaratory judgment declaring that Goal Zero had just cause to terminate the exclusive 20 distributor agreement with LCG. 21 LCG answered the complaint, denying liability, asserting numerous affirmative 22 defenses, and bringing a counterclaim against Goal Zero. The original counterclaim 23 included three causes of action: (i) “dolo” or fraud in the fulfillment of the obligations; 24 (ii) violations of Puerto Rico Act 75; and (iii) contractual interference and punitive 25 26 damages. LCG contends that Goal Zero wrongfully terminated the distribution contract 27 and interfered with LCG’s client relationships causing damages in all respects. Following 28 3 1 a motion to dismiss filed by Goal Zero, LCG amended its counterclaim and asserted 2 causes of action for unlawful termination of the distribution agreement under Puerto 3 Rico Act 75, and damages for tortious contractual interference. (Docket No. 61). 4 In support of these claims, LCG avers that while the distribution agreement 5 generally required it to pay Goal Zero for the products in advance before shipping, LCG 6 7 was sometimes forced to pay for orders even before they went into production. According 8 to LCG, in many instances throughout the years, Goal Zero canceled or withheld orders 9 placed months after accepting the POs, claiming that the cancellations were due to 10 reasons beyond their control, including supply chain problems, and supply limitations 11 resulting from the pandemic, among others. LCG underscores that the total sales 12 13 objective of Goal Zero products for the years 2019 to 2022 was less than $3,500,000.00; 14 yet, notwithstanding orders cancelled and withheld by Goal Zero, LCG achieved sales of 15 Goal Zero’s products totaling $13,417,564.26. Said amounts, LCG asserts, do not include 16 or consider its lost sales, which were considerable, due to Goal Zero’s negligence, errors, 17 and omissions when attempting to fulfill LCG’s orders. 18 19 LCG further alleges that it invested hundreds of thousands of dollars in 20 advertising, promoting, and distributing the Goal Zero brand and its products. Through 21 its efforts, LCG made Goal Zero known in Puerto Rico, creating brand recognition and 22 developing a significant market for its products. LCG purchased products from Goal Zero 23 for its account; imported the products into Puerto Rico; paid for its account all duties 24 and taxes; stocked and kept an inventory of the products, when available, to meet 25 26 customer demands; decided the price at which to sell the products; invested in funds in 27 the promotion and advertising of the products; and kept Goal Zero informed of the 28 4 1 development of the market and the needs and expectations of the customers, including 2 the terms of the large-scale contracts with the Municipalities of San Juan and Bayamón. 3 LCG maintains that its performance surpassed Goal Zero’s expectations or estimates for 4 the Puerto Rico market during the term of their relationship. 5 LCG posits that it was Goal Zero’s actions what prompted the termination of the 6 7 distribution agreement by: failing to deliver and/or cancelling orders without no 8 reasonable advance notice; selling directly and/or permitting direct sales from third 9 parties to Puerto Rico-based consumers and businesses; failing to promptly intervene 10 with U.S.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Oppenheimer Fund, Inc. v. Sanders
437 U.S. 340 (Supreme Court, 1978)
Mulero-Abreu v. Puerto Rico Police Department
675 F.3d 88 (First Circuit, 2012)
Moore v. McCalla Raymer, LLC
916 F. Supp. 2d 1332 (N.D. Georgia, 2013)
Rivera v. Kmart Corp.
190 F.R.D. 298 (D. Puerto Rico, 2000)
Alexander v. Federal Bureau of Investigation
194 F.R.D. 305 (District of Columbia, 2000)
Bethea v. Comcast
218 F.R.D. 328 (District of Columbia, 2003)
Trevino v. ACB American, Inc.
232 F.R.D. 612 (N.D. California, 2006)
Sánchez-Medina v. Unicco Service Co.
265 F.R.D. 24 (D. Puerto Rico, 2009)
Donovan v. Philip Morris USA, Inc.
268 F.R.D. 1 (D. Massachusetts, 2010)
Aponte-Navedo v. Nalco Chemical Co.
268 F.R.D. 31 (D. Puerto Rico, 2010)
Vázquez-Fernández v. Cambridge College, Inc.
269 F.R.D. 150 (D. Puerto Rico, 2010)
Puerto Rico Aqueduct & Sewer Authority v. Clow Corp.
108 F.R.D. 304 (D. Puerto Rico, 1985)
Ares-Serono, Inc. v. Organon International B.V.
151 F.R.D. 215 (D. Massachusetts, 1993)
Green v. Fulton
157 F.R.D. 136 (D. Maine, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
Goal Zero LLC v. LCG Holdings LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goal-zero-llc-v-lcg-holdings-llc-prd-2026.