Auto parts supplier claims food distributor hasn't compensated it for $72K engineering study

By Nicholas Malfitano | Oct 27, 2017

PHILADELPHIA – A local automotive parts supplier has initiated legal action against a California-based fresh food distributor, claiming the latter hasn’t compensated it for the costs of an engineering study and interest in excess of $72,000.

Penn Detroit Diesel Allison, LLC of Philadelphia filed suit in the Philadelphia County Court of Common Pleas on Oct. 19 versus Ready Pac Foods, Inc., of Irwindale, Calif.

“On or about May 13, 2015, the defendant and n2 Integrated Energy Solutions, LLC, a wholly-owned subsidiary of Penn Detroit Diesel Allison, LLC entered into a Letter of Intent wherein, plaintiff agreed to prepare a detailed engineering study indicating that the retrofit installation of defendant’s existing co-generation system and facility upgrades, as more fully set forth in the agreement, would not exceed $3,650,987,” the suit states.

According to the agreement, if the $3,650,987 price point was met, the defendant had the option to either engage the plaintiff, at which point the cost of the engineering study would be included in the cost of the project, or pay the plaintiff $65,000, which was the cost of the study, the suit says. But if the price point was not met, the defendant had no obligation to the plaintiff, the suit says.

“On or about August 2015, plaintiff delivered the study to defendant which included five installation options, four of which were below the price point and one which, after applicable rebates, was below the price point. Despite providing five options below the price point, the defendant chose not to authorize plaintiff to move forward with the project and as such, pursuant to the agreement, plaintiff invoiced defendant for the costs of the study, $65,000,” the suit continues.

Despite delivering to plaintiff the study according to the terms of the agreement, the defendant has supposedly refused to pay the outstanding cost for it of $65,000. Furthermore, the plaintiff says there is also the matter of $7,150 in pre-judgment interest, which continues to accrue – for a collective grand total of $72,150.

For counts of breach of contract, account stated, unjust enrichment and quantum meruit, the plaintiff is seeking damages of $72,150, plus costs and continuing interest.

The plaintiff is represented by Britain R. Henry of McNelly & Goldstein, in Hatfield.

Philadelphia County Court of Common Pleas case 171002308

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at

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