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Topp Paper Co. v. ETI Converting Equipment

United States District Court for the Southern District of Florida
2013 WL 12101111 (2013)


Facts

Florida-based Topp Paper Company, LLC (plaintiff) bought a label-printing machine for over $1 million from Canadian company ETI Converting Equipment (defendant). The contract contained a limited 12-month repair-or-replacement warranty, and a choice-of-law clause selecting the laws of Quebec, Canada, as governing. The machine kept malfunctioning, and Topp requested a refund 21 months after its installation. ETI refused the machine’s return and replaced its coating head, making it run substantially better. But Topp claimed that problems with high-speed labels sticking in the machine continued. Ultimately, Topp claimed that the machine stopped working completely and sued for a refund. ETI argued that it had fixed the problems, and a Topp employee said Topp continued using the machine eight hours a day. Topp countered it could not use the machine to make fast application labels for high-volume industries like food, produce, and packaging, undercutting its profits. ETI requested summary judgment finding that it had not fundamentally breached the contract.

Rule of Law

Issue

Holding and Reasoning (Rosenbaum, J.)

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