A plastic sheet maker and building materials giant Owens Corning are battling over a $1.1 million invoice for 6,250 sheets used to separate roofing asphalt.
New York Packaging Corp. said in court documents that Toledo, Ohio-based Owens Corning agreed to pay $172.50 per sheet for the product used to store and ship the roofing material. Owens Corning officials said they were quoted $172.50 per box of 200 sheets. That's about 86 cents per sheet.
Lawyers for each side have filed motions in U.S. Bankruptcy Court in Wilmington, Del., where Owens Corning filed for Chapter 11 protection in late 2000.
``We are vigorously pursuing this,'' said Dave Dimmer, Owens Corning spokesman.
New York Packaging maintains that Owens Corning requested 6,250 polypropylene sheets for a total invoice price of $1.1 million. The product was ordered for use at an asphalt plant in Jacksonville, Fla. A February 2001 purchase order, on Owens Corning letterhead, is included among the court filings.
In court documents, the building materials firm called the invoice ridiculous. Owens Corning officials said New York Packaging sent correct invoices to OC sister plants.
New York Packaging, based in New Hyde Park, N.Y., said it confirmed the sale price and quantity for high density polyethylene sheets in a March 2001 sales order. The firm billed and shipped the order in April, ascertaining that Owens Corning approved the invoice for payment that same month.
New York Packaging said the purchase order from Owens Corning is a binding contract. Under the New York Uniform Commercial Code, Owens Corning is required to pay the contract price because it did not object to the invoice or product until June 2001, according to court documents.
Jeffrey Rabiea, president of New York Packaging, said his firm is pursuing the case vigorously as well.
``We had an express written contract with Owens Corning,'' he said in an Aug. 6 telephone interview. ``We conformed to our end of the contract and they did not.''
Lawyers for New York Packaging are seeking summary judgment of $1.4 million plus 9 percent annual interest from May 2001.
New York Packaging is a sister firm to Pennsak Inc., a polypropylene and PE film and bag maker based in Sharon, Pa.