Flint Group Sues Trend Offset Printing for Outstanding Debt and Confiscation of Consigned Goods
Flint CPS Inks North America LLC, formerly known as Flint Group North America, which is the North American subsidiary of Luxembourg-based Flint Group serving the commercial printing industry, has filed a multi-count lawsuit in the United States District Court Central District of California — Southern Division against Trend Offset Printing Services, Inc. The charges include breach of contract, account stated and conversion. The lawsuit seeks monetary damages and other forms of relief. McDonald Hopkins PLC of Bloomfield Hills, Mich., is representing Flint Group.
Headquartered in Los Alamitos, Calif., the defendant is a national printer serving magazine, catalog, direct mail and retail advertising segments, whose services include prepress, press, finishing and mail and distribution of printed materials (sale circulars and printed inserts). Flint Group and Trend entered into a Supply Agreement on or about January 1, 2016, which was later amended by a First Amendment to Supply Agreement, dated August 1, 2017.
This action arises out of Trend’s breach of this supply agreement whereby Flint Group provided Trend with inks, flat blankets, sleeves, fountain solutions, web conditions and press washes. The current balance owing on Trend’s account with Flint Group is nearly $4 million. The substantive actions leading to the claims in the complaint pre-date the COVID-19 crisis.
What started merely as breach of contract for failing to pay for goods escalated to a wrongful retention of Flint Group’s property and usage of ink products in flagrant violation of Flint Group’s contractual rights. Trend ceased making timely payments for pre-supplied ink products while at the same time made substantial use of the goods.
Moreover, Trend has excluded Flint Group personnel from taking regularly scheduled inventories of pre-supplied goods at Trend facilities and prevented Flint Group from repossessing or reclaiming those consigned goods in further violation of Flint Group’s contractual rights.
It is a common practice in the printing industry for major suppliers such as Flint Group to pre-position materials at customer locations and determine the amounts used on-location at agreed upon intervals for subsequent billing.
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