U.S. Nonwovens Corp. v. Pack Line Corp.

48 Misc. 3d 211, 4 N.Y.S.3d 868
CourtNew York Supreme Court
DecidedMarch 12, 2015
StatusPublished
Cited by4 cases

This text of 48 Misc. 3d 211 (U.S. Nonwovens Corp. v. Pack Line Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Nonwovens Corp. v. Pack Line Corp., 48 Misc. 3d 211, 4 N.Y.S.3d 868 (N.Y. Super. Ct. 2015).

Opinion

OPINION OF THE COURT

Emily Pines, J.

In this action to recover damages for, among other things, breach of contract and breach of warranty, defendant Nuspark Engineering, Inc. moves (motion sequence 002), pursuant to CPLR 3211, to dismiss the plaintiff’s complaint as asserted against it. The plaintiff opposes the motion.

Factual and Procedural Background

In March 2009, the plaintiff U.S. Nonwovens Corp. entered into separate agreements with defendant Pack Line Corp. and defendant Nuspark Engineering, Inc. for the purchase of a custom automatic filling and sealing machine (Auto Tubber) for use in its business of producing nonwoven products including sanitary disposables and wipes. The Auto Tubber was to be comprised of several distinct components, with a conveyor system designed and manufactured by Nuspark. Plaintiff agreed to pay Nuspark $150,000 for the conveyor and installation and commissioning of the integrated machine.

On May 21, 2014, plaintiff commenced this action against Pack Line and Nuspark. Plaintiff alleges, among other things, that “[b]etween in or around December 2009 and August 2010, [213]*213the Auto Tubber was delivered, set up, installed and tested in [plaintiff’s] facility.” (Verified complaint ¶ 18.) Plaintiff also alleges that “[u]pon completion of installation, Pack Line tested the Auto Tubber, and it was immediately apparent that the machine was completely defective and unsatisfactorily manufactured.” (Verified complaint ¶ 19.) Plaintiff further alleges that “[immediately upon delivery, [plaintiff] made numerous complaints about the defective Auto Tubber to Pack Line and Nuspark.” (Verified complaint ¶ 27.) Plaintiff asserts causes of action for breach of contract, breach of the implied covenant of good faith, breach of express warranty, breach of the implied warranty of merchantability, breach of the implied warranty of fitness, and unjust enrichment.

Nuspark now moves to dismiss the verified complaint as asserted against it. Nuspark initially contends that plaintiff’s claims against it pursuant to New York State law fail to state causes of action because they are preempted by the United Nations Convention on Contracts for the International Sale of Goods (S Treaty Doc No. 98-9, 52 Fed Reg 6262, reprinted in 15 USCA former Appendix [1997] [CISG]). Additionally, Nus-park argues that plaintiff’s claims are barred under the CISG because plaintiff failed to notify Nuspark of any alleged nonconformity of the conveyor designed and manufactured by Nuspark prior to the commencement of this action. Finally, Nuspark contends that plaintiff’s contractual claims are barred by the statute of limitations.

In opposition, plaintiff concedes that the CISG applies to its contract with Nuspark and that it preempts its state law contract claims. However, plaintiff argues that dismissal is not warranted because valid substantive claims for breach of contract, breach of implied covenant of good faith, and breach of implied and express warranty have been stated under New York law and the UCC, which satisfies the similar substantive requirements under the CISG for such claims. Plaintiff contends that its verified complaint sufficiently alleges that it provided the requisite notice to Nuspark of the lack of conformity of the conveyor by alleging that “[immediately upon delivery, [plaintiff] made numerous complaints about the defective Auto Tubber to . . . Nuspark.” Finally, plaintiff argues that its claims were commenced within the applicable four-year statute of limitations as its claims did not accrue until tender of delivery was complete which, plaintiff alleges, occurred in August 2010 when the contractually required [214]*214delivery, installation, integration and testing of the Auto Tubber were completed.

Discussion

As summarized by United States Senior District Judge Walls in Beth Schiffer Fine Photographic Arts, Inc. v Colex Imaging, Inc. (2012 WL 924380, *7, 2012 US Dist LEXIS 36695, *18-19 [D NJ, Mar. 19, 2012, No. 10-CV-05321]):

“Ratified by the United States on December 11, 1986, the CISG ‘applies to contracts of sale of goods between parties whose places of business are in different States . . . when the States are Contracting States.’ CISG Art. l(l)(a). See Forestal Guarani S. A. v. Daros International, Inc., 613 F.3d 395, 397 (3d Cir. 2010) . . . The CISG is a self-executing treaty that preempts contrary provisions of Article 2 of the UCC and other state contract law to the extent that those causes of action fall within the scope of the CISG. U.S. Const., Art. VI; Medellin v. Texas, 552 U.S. 491, 504-05, 128 S.Ct. 1346, 170 L.Ed.2d 190 (2008). See American Mint LLC v. GOSoftware, Inc., No. 1:05-cv-650, 2005 WL 2021248, at *2-3 (M.D.Pa. Aug. 16, 2005) (noting that ‘if the CISG applies to the contract at issue, it will pre-empt domestic sales laws that otherwise would govern the contract.’). Outside the scope of the CISG, otherwise applicable state law governs the dispute. See Caterpillar Inc. v Usinor Industeel, 393 F Supp2d 659, 676 (N.D.Ill. 2005).”

In considering a motion to dismiss a complaint pursuant to CPLR 3211 (a) (7):

“The complaint must be liberally construed and the plaintiff given the benefit of every favorable inference. The court must also accept as true all of the facts alleged in the complaint and any factual submissions made in opposition to the motion. If the court can determine that the plaintiff is entitled to relief on any view of the facts stated, its inquiry is complete and the complaint must be declared legally sufficient. While factual allegations contained in the complaint are deemed true, bare legal conclusions and facts flatly contradicted on the record are not entitled to a presumption of truth.” (Symbol Tech., Inc. v Deloitte & Touche, LLP, 69 AD3d 191, 193-195 [2d Dept 2009] [citations omitted].)

[215]*215Here, as mentioned above, plaintiff concedes that the CISG applies and preempts its state law contract claims. Thus, the issue is whether the claims as asserted in the verified complaint should be dismissed because they fail to state causes of action. The court agrees with plaintiff that dismissal of the claims for breach of contract and breach of express and implied warranties is not warranted.

“The elements of a breach of contract claim are the same [under the CISG and the UCC]; a [plaintiff] must show: ‘(1) the existence of a valid and enforceable contract containing both definite and certain terms, (2) performance by . . . plaintiff, (3) breach by . . . defendant and (4) resultant injury to . . . plaintiff.’ ” (Maxxsonics USA, Inc. v Fengshun Peiying Electro Acoustic Co., Ltd., 2012 WL 962698, *4, 2012 US Dist LEXIS 37938, *9 [ND Ill, Mar. 21, 2012, No. 10-C-1174, Leinenweber, J.], quoting Magellan Intl. Corp. v Salzgitter Handel GmbH, 76 F Supp 2d 919, 924 [ND Ill 1999].)

Under New York law, “[t]he elements of a cause of action for breach of contract are (1) formation of a contract between plaintiff and defendant, (2) performance by plaintiff, (3) defendant’s failure to perform, (4) resulting damage” (2 NY PJI2d 4:1 at 676 [2013]).

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48 Misc. 3d 211, 4 N.Y.S.3d 868, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-nonwovens-corp-v-pack-line-corp-nysupct-2015.