PHILADELPHIA — The manufacturer of millions of dehumidifiers is facing a breach of contract claim after the products allegedly caused more than 100 fire events.
Danby Products Inc., filed a complaint Jan. 13 in the U.S. District Court for the Eastern District of Pennsylvania against New Widetech Industries Co. alleging breach of contract and other claims.
Danby alleges in its complaint that it entered into an agreement with NWT to supply dehumidifiers and that from 2009 through 2016, it purchased approximately 1 million units for more than $100 million. Danby claims that in 2016, it began to receive claims from consumers about the dehumidifiers malfunctioning, including causing more than 100 fire events, and that NWT acknowledged the products were defective and planned on issuing a recall.
Danby alleges NWT has failed to compensate it for the significant losses suffered due to the defective dehumidifiers including back-charges and withheld payments from Costco and Menard's, along with logistics costs of transporting and stowing NWT's defective products.
Danby seeks monetary relief of more than $150,000, interest and all other appropriate relief. It is represented by Robert Balch and Ian Baxter of Post & Schell PC in Allentown.
U.S. District Court for the Eastern District of Pennsylvania case number 2:22-CV-00155-NIQA