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Locker maker files business litigation against supplier

Arizona companies often partner with other companies who can produce certain items that enhance or replace current product lines. One company provides the required specifications of the product needed, and the other company is tasked with building it. When one company somehow breaches its part of the agreement, business litigation may be the only way to resolve the issue.

Tiburon Lockers Inc. found itself in this type of situation when Northgate Digital Corp. apparently failed to produce a technologically advanced locker as requested by Tiburon. Court records indicate that the company entered into an agreement for the product in 2014. Since that time, Tiburon says it has yet to receive a working product.

Allegedly, what Tiburon has received was not built in accordance with the contract. The company claims that it was given certain assurances by Northgate that never materialized. Furthermore, Tiburon asserts that Northgate knew of the product's deficiencies and had no intention of fixing them.

Since Tiburon did not believe that negotiations were going to be fruitful, the company decided to file a lawsuit against Northgate. The main allegations in the complaint are fraud and breach of contract. Tiburon is seeking restitution for profits it claims to have lost due to Northgate's breach and fraud, among other damages.

Arizona companies that find themselves in a similar situation may also determine that business litigation is necessary. A company can seek more than just monetary damages, however. There are also non-economic damages available to plaintiffs if it is determined that simply seeking financial damages would not result in an equitable outcome to satisfy the needs of the company.

Source: pennrecord.com, "Northgate Digital Corp. sued over breach of contract, fraud allegations", Carrie Bradon, Dec. 14, 2015

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