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Kettering Adventist Healthcare v. Jade Designs, LLC

677 F. Supp. 3d 735 (2023)

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Kettering Adventist Healthcare v. Jade Designs, LLC

United States District Court for the Southern District of Ohio
677 F. Supp. 3d 735 (2023)

Facts

In December 2020, Kettering Adventist Healthcare (Kettering) (plaintiff) contracted with Jade Designs, LLC (Jade) (defendant) to buy 300,000 N-95 masks manufactured by 3M for approximately $1.18 million. Jade and Kettering exchanged the masks and the payment by the contract deadline. Two weeks after the delivery deadline, Kettering told Jade that it was concerned that the masks were counterfeit and not manufactured by 3M. Kettering also sent some of the masks to 3M, which confirmed that they were counterfeit. Approximately two weeks after receiving this confirmation from 3M and six weeks after initially receiving the delivery, Kettering sent Jade a letter demanding a refund plus approximately $18,000 in anticipated extra costs for fixing the issue. When Jade did not refund the money, Kettering sued it in federal district court for breach of contract and other claims. The parties filed cross-motions for summary judgment. Jade argued that (1) Kettering had never revoked its acceptance of the delivery and (2) five weeks after Kettering had demanded the refund, Jade had sent a notice that it intended to cure the issue by shipping a new delivery of authentic masks. However, Jade did not submit any admissible evidence of its claimed cure notice. The district court considered both summary-judgment motions.

Rule of Law

Issue

Holding and Reasoning (Rose, J.)

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