Chinese keg business alleges Geemacher failed to pay for services

By Annie Hunt | Feb 16, 2016

PHILADELPHIA — A Chinese keg manufacturer is suing a Pottstown company, alleging breaching a contract involving keg shipments worth more than $1 million.

Penglai Jinfu Stainless Steel Products Co. Ltd. filed a lawsuit Feb. 2 in the U.S. District Court for the Eastern District of Pennsylvania against Geemacher LLC of Pottstown, alleging breach of contract.

Jinfu is a Chinese corporation with its primary office in Penglai, Sandong Province. According to the complaint, Jinfu entered into a sales contract with the defendant Oct. 5, 2014, and thereafter, several contracts were entered into between the two parties, requiring Jinfu to supply the defendant with steel kegs in accordance with certain specifications. Payment terms of the contracts were varied.

The suit says Geemacher failed to pay for all of the shipments of kegs. Jinfu notified the defendant and also agreed to defer several of the invoices beginning in the fourth quarter of 2014 to aid in the defendant’s payment efforts, the lawsuit states.

After not receiving any payments, on Nov. 16, 2015, Penglai informed the defendant it would not ship any more kegs.

In late 2015, the complaint says, Geemacher advised the plaintiff it had been approached for purchase by a third party, and that it intended to include the aforementioned kegs in the sale. Upon information and belief, the sale is imminent.

The plaintiff alleges the defendant owes an outstanding balance of $1,344,324.75, damages which it will suffer if it sells the kegs to the third party.

Jinfu seeks damages of $1,344,324.75, an order the defendant return the kegs immediately, entrance of a preliminary injunction to grant relief sought as a temporary restraining order, attorney fees and costs. It is represented by attorneys Natalie D. Ramsey and Davis Lee Wright of Montgomery McCracken Walker & Rhoads LLP in Philadelphia, and David D. Dragich and Amanda C. Vintevoghel of The Dragich Law Firm PLLC in Grosse Pointe, Michigan.

U.S. District Court for the Eastern District of Pennsylvania Case number 2:16-cv-00552-RBS

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