Annie Hunt Feb. 12, 2016, 1:48pm


PHILADELPHIA — A Louisiana polymer production company is suing Gracious Living Corporation, alleging the corporation is refusing to pay back taxes in breach of contract.

Pinnacle Polymers LLC of Garyville, Louisiana, filed a lawsuit Feb. 3 in U.S. District Court for the Eastern District of Pennsylvania against Gracious Living Corporation, also known as Gracious Living Industries Inc. of Woodbridge, Ontario, alleging breach of contract and unjust enrichment.

According to the complaint, Pinnacle sold certain polymer products to Gracious Living from Aug. 30, 2011, through Nov. 9, 2012. The two parties, the suit says, entered into a contract July 31, 2011, in which the defendant agreed to reimburse any taxes the plaintiff pays on their behalf. Pinnacle says it recently learned it accidentally undercharged the defendant for Canada’s goods and services tax and harmonized sales tax.

The lawsuit states the Canada Revenue Agency is seeking more than $800,000 from Pinnacle. The plaintiff alleges it is the defendant’s legal responsibility to pay for back taxes due on relevant sales, which it is allegedly refusing to pay. Pinnacle says Gracious Living's refusal to pay constitutes a breach of contract, resulting in unjust enrichment.

Pinnacle Polymers seeks damages of more than $75,000 (including actual, compensatory, consequential, and punitive damages), equitable relief and reimbursement of the $800,000 in back taxes, costs, expenses and attorney fees. It is represented by attorneys Joseph R. Heffern and Lance Roger of Rogers Castor, in Ardmore, Pennsylvania.

U.S. District Court for the Eastern District of Pennsylvania Case number 2:16-cv-00542-PD

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