PHILADELPHIA – A Langhorne company alleges it "ceased virtually all of its operations" after a Tennessee home decor wholesaler terminated an agreement without notice.
Advanced Exports LLC filed a complaint on Feb. 23 in the U.S. District Court for the Eastern District of Pennsylvania against Seabrook Wallcoverings Inc. alleging breach of contract and other counts.
According to the complaint, the plaintiff entered into an exclusive distributor agreement with the defendant in 2011. It alleges it learned in 2017 that the defendant had formed a new exclusive distributorship agreement in the same exclusive territory with another company and in September 2017, the defendant informed the plaintiff it could no longer purchase any Seabrook products.
"As a result of Seabrook's actions, Advanced Exports was left with millions of dollars' worth of useless Seabrook inventory that it could no longer sell, Seabrook store-fronts and marketing materials that it could no longer use, and catalogs for Seabrook products it could no longer purchase. Within a matter of weeks, Advanced Exports had ceased virtually all of its operations," the suit states.
The plaintiff holds Seabrook Wallcoverings Inc. responsible because the defendant allegedly terminated the agreement without notice and consummated a distributor agreement with another entity for distribution of exclusive products.
The plaintiff requests a trial by jury and seeks incidental, compensatory and consequential damages that exceed $75,000 plus interest, payment of profits to the plaintiff, royalties for the value of the sales, punitive damages, court costs and any further relief the court grants. It is represented by Fridrikh V. Shrayber of Cohen & Grigsby PC in Pittsburgh.