Norco Injection Molding Inc. has sued Best Plastics LLC and a Home Depot Inc. unit, alleging nonpayment of $293,000 for production services.
The custom molder filed a breach-of-contract complaint Feb. 17 in the San Bernardino County Superior Court's west judicial district in Rancho Cucamonga, Calif.
“Norco was running large storage bins and tote buckets” for Best and shipping the products to retailer Home Depot at Best's direction, Jack Williams, Norco owner and chief financial officer, said in an interview at the firm's Chino headquarters plant.
Best Plastics “will not comment on pending litigation except to confirm its intention to vigorously defend the claims” in the Norco filing, according to a statement from Best's law firm, the Los Angeles office of Sheppard Mullin Richter & Hampton LLP.
According to the suit, Norco and Best agreed orally on Feb. 8, 2008, about Norco producing tote buckets using Best-supplied polypropylene and getting paid upon shipment to Home Depot USA Inc.
In January, Best informed Norco that Home Depot USA wanted a change in design and size for a new tote bucket. Best shipped molds from its McDonough, Ga., plant to California for Norco to perform the work, but Norco imposed a financial condition under which Best would pay $60,000 on its account balance, then at $233,000, according to the suit.
Best agreed to initiate a wire transfer for that amount and provided a receipt for a purported wire transfer. Later, Norco discovered the wire transfer had been terminated and determined the receipt was fraudulent, but, by Jan. 12, Norco had completed the work, shipped the product and returned the molds, according to the suit.
Norco seeks payment of the full amount, prejudgment interest from Jan 12 and reimbursement of legal fees.
Douglas Scott, in the Rancho Cucamonga office of the Hanna & Scott law firm, represents Norco.
Norco employs 125, occupies 120,000 square feet and operates 39 presses with 30-1,500 tons of clamping force. Norco had 2008 sales of about $14 million, said Williams, who projected lower volume this year.
Englewood Cliffs, N.J.-based Best Plastics sells lines of clear and food-storage containers, totes, garbage cans, laundry hampers and utility items.