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Catalyst Paper Operations sues Bengal Converting Services claiming breach of contract in alleged nonpayment

By The Penn Record | Nov 16, 2015

Paper factory

A Delaware-based paper business is suing a Pennsylvania firm alleging breach of contract and unjust enrichment in a monetary dispute.

Catalyst Paper Operations Inc. sued Bengal Converting Services of Linfield in the U.S. District Court for the Eastern District of Pennsylvania on Aug. 19.

According to the complaint, the plaintiff is a paper manufacturer and supplier, while Bengal is a paper converter that fabricates one form of paper into another.

The suit states that Bengal had a business relationship with a third party and its affiliates, referred to collectively as NewPage Corp., wherein NewPage sold paper to Bengal from its mills in Wisconsin and Maine.

The lawsuit states that the plaintiff purchased certain NewPage assets including accounts receivable on Jan. 7, and that between July 2014 and January, more than $1.5 million worth of products was shipped to the defendant with corresponding invoices.

Alleging that Bengal accepted delivery without paying for the goods, Catalyst maintains that the defendant is in breach of contract by failing to either remit payment or return the goods. Claiming it is entitled to damages in excess of $1,506,784.17, Catalyst seeks judgment in its favor for full payment plus 6 percent interest per annum dating from Sept. 1, 2014, along with attorneys’ fees and court costs. The plaintiff is represented by Christopher Loizides of Loizides P.A. in Wilmington, Delaware.

U.S. District Court Eastern District of Pennsylvania 2:15-cv-04719-GP

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