Case No.582
Manufacturing
LITIGATOR(S):
Etan Mark
Michelle Genet Bernstein
MM&H represents Tazza Brands East, Inc., which provides packaging and related services for the cleaning, sanitizing, and disinfecting industry. In January 2021, Tazza and Aberrant Ventures LLC executed a Contract Purchasing Agreement where Aberrant engaged Tazza to provide certain services in connection with the packaging of disinfecting products. Given the high demand for disinfectant products, this contract was to be extremely lucrative to Tazza, to the tune of production of millions of canisters of disinfectant, with expected profits in the tens of millions.
Consistent with the parties’ expectations and the express terms of the contract, Tazza made significant commitments and invested millions of dollars in machinery, equipment and a lease for approximately 300,000 square feet of manufacturing space. Aberrant, however, failed to make even a single production order, despite specific contractual monthly commitments. Despite best efforts to work with Aberrant to pursue opportunities beneficial to both companies, the business relationship deteriorated.
It also has come to Tazza’s attention that Aberrant obtained and attempted to use recordings of Tazza personnel’s telephone communications, which is illegal under both Florida and Illinois law. On behalf of Tazza, MM&H commenced a JAMS arbitration in Chicago, Illinois in early June 2021 to recover the costs and damages directly resulting from Aberrant’s failure to perform on its contractual commitments. Tazza’s arbitration demand includes claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and for illegal eavesdropping. Tazza seeks damages in excess of $15,000,000.