Myrtle Packaging, LLC v. Berks Plant Design & Maintenance, Inc.

CourtNew Jersey Superior Court Appellate Division
DecidedOctober 16, 2025
DocketA-3198-23
StatusUnpublished

This text of Myrtle Packaging, LLC v. Berks Plant Design & Maintenance, Inc. (Myrtle Packaging, LLC v. Berks Plant Design & Maintenance, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myrtle Packaging, LLC v. Berks Plant Design & Maintenance, Inc., (N.J. Ct. App. 2025).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-3198-23

MYRTLE PACKAGING, LLC,

Plaintiff-Respondent,

v.

BERKS PLANT DESIGN & MAINTENANCE, INC.,1

Defendant,

and

EDWARD F. LEH,2

Defendant-Appellant. ___________________________

Argued September 30, 2025 – Decided October 16, 2025

Before Judges Gilson, Firko, and Vinci.

1 Defendant Berks Plant Design & Maintenance, Inc. (Berks) was dismissed from the case without prejudice due to a Chapter 7 bankruptcy petition being filed pursuant to 11 U.S.C. § 362(a) and is not participating in this appeal. 2 Defendant Edward F. Leh is also referred to as Edward F. Leh, III in the record. On appeal from the Superior Court of New Jersey, Law Division, Cumberland County, Docket No. L-0719-19.

Mark L. Rhoades argued the cause for appellant (Sklar Law, LLC, attorneys; Mark L. Rhoades, on the briefs).

Beau C. Wilson argued the cause for respondent (Hyland Levin Shapiro LLP, attorneys; David R. Dahan, of counsel and on the brief; Beau C. Wilson, on the brief).

PER CURIAM

Defendant Edward F. Leh appeals from the Law Division's May 2, 2024

order entering final judgment against him and challenges an April 4, 2024 order

striking his answer to the amended complaint and restated counterclaims. We

affirm both orders.

I.

We summarize the pertinent facts and procedural history, which are

derived from the record. On November 20, 2019, plaintiff Myrtle Packaging,

LLC (Myrtle) filed a complaint against defendant Berks, asserting breach of

contract, breach of warranty, negligence, violations of the New Jersey Consumer

Fraud Act (CFA), N.J.S.A. 56:8-1 to -229, common law fraud, and acts, actions,

and omissions resulting in losses and damages.

Myrtle operates a food production and packaging plant in Millville.

Berks, a Pennsylvania corporation, delivered, constructed, serviced, and

A-3198-23 2 installed equipment for Myrtle's newly constructed Millville plant. In 2016,

Myrtle contracted with Berks to provide a "turnkey bottling and packaging line."

A turnkey line is a production system designed to control the entire

manufacturing and distribution process, including assembly, quality control, and

delivery. Myrtle wanted to optimize production at its Millville plant to support

the growing demand for its primary product, "Hank's Sauce."

According to Myrtle, Berks's proposal included setting up and running the

line at its facility in Pennsylvania before installing the line at Myrtle's Millville

plant. Berks's proposal specified that the system's components would be "brand

new" and "never removed from [the] original shipping skids." Instead, Myrtle

claimed the equipment delivered was not new as promised but was "fully

refurbished" old equipment that was not in proper working order and required

replacement and repair by Myrtle.

Myrtle alleged it incurred "significant costs" to obtain equipment and

components from other sources, and additional labor and repair costs for

substitute contractors. Myrtle claimed Berks made "material

misrepresentations" about the quality and condition of the equipment. Myrtle

alleged Berks's actions caused delays in production and required Myrtle to

employ a staffing service to fill in bottles by hand, rather than the automated

A-3198-23 3 process Berks failed to properly provide and install. Relying on Berks's

representations, Myrtle paid Berks in excess of $500,000. Myrtle sought

compensatory damages, treble damages, attorney's fees, and costs of suit.

Berks filed an answer and counterclaim alleging breach of contract and,

alternatively, unjust enrichment. Berks demanded judgment against Myrtle in

the amount of $71,731.44 for equipment and services provided but not paid for.

Myrtle filed an answer to the counterclaim.

On December 1, 2021, Myrtle filed an amended complaint—the operative

pleading here—to add Leh as a defendant and asserted personal claims against

him. Myrtle alleged Leh is the "[p]resident and/or agent, employer, salesman,

partner, officer, director, stockholder and/or associate of Berks." Myrtle

contended Leh made "several false affirmative statements and promises

regarding the quality, condition[,] and functionality" of the proposed line and

equipment for the line to Myrtle's president.

Myrtle claimed Leh stated the equipment would be "brand new," "new,"

or "like new," and the line would be fully "designed, constructed and tested" at

Berks's facility so it could be "easily delivered and operational upon delivery"

as a turnkey line. The amended complaint alleged Leh stated he would provide

A-3198-23 4 Myrtle "Hobart"3 kettles but delivered inferior "Brew-Bev" kettles, which

constituted a "bait and switch" by Leh. Myrtle alleged defects in various

equipment and inferior "aftermarket parts," which demonstrated Leh's "fraud"

being perpetrated upon it. Myrtle alleged Leh misrepresented that Berks was

using the "A-Team" for the installation process when in fact Berks only had one

team. The ad damnum clause in the amended complaint requested punitive

damages in addition to the relief sought in the original complaint.

After Berks and Leh answered Myrtle's amended complaint on December

17, 2021, the parties engaged in discovery. Myrtle served an expert report

authored by Jim Goldman of Global Innovation Professionals LLC.4 Goldman

is a mechanical engineer and a certified packing professional. He opined that

Myrtle sustained $13,056,984 in damages as a result of defendants'

misrepresentations, which led to additional repairs, purchasing more equipment,

and requiring extra staff. Goldman stated that the turnkey line failed to meet

Occupational Safety and Health Administration, Food and Drug Administration,

and Global Food Safety Initiative standards. Myrtle also served a report

3 Leh incorrectly referred to "Hobart" kettles as "Hubbert" kettles in his invoice to Myrtle. 4 Myrtle incorrectly referred to "Global Innovation Professionals LLC" as "Global Innovation Professions LLC" in its merits brief. A-3198-23 5 authored by Michael A. Saccomanno, a certified public accountant with Marcum

Accounts and Advisors. Saccomanno opined that Myrtle sustained $8,764,275

in damages.

On May 17, 2023, Berks filed a Chapter 7 bankruptcy petition in the

United States Bankruptcy Court in the Eastern District of Pennsylvania. On

June 6, 2023, the court dismissed Myrtle's claims against Berks and Leh without

prejudice pursuant to the automatic stay provision set forth in 11 U.S.C. §

362(a). On July 6, 2023, the court noted its error in dismissing Leh, who had

not filed an individual bankruptcy petition, and reinstated the amended

complaint as to Leh only in his individual capacity.

Two months after the discovery end date had passed, on November 8,

2023, Leh's second counsel, Offit Kurman, moved to withdraw from

representing him arguing "good cause" pursuant to the Rules of Professional

Conduct.

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