602 F.Supp.3d 1331
C.D. Cal.2022Background:
- Deitsch Plastics (Connecticut) supplied PVC fabric to Gredale LLC (members non-Connecticut) for use in reusable medical isolation gowns in mid-2020; court has diversity jurisdiction.
- Gredale ordered $284,750 of PVC fabric; a third party paid $121,401.62, leaving Gredale owing $162,598.38.
- Gredale sold gowns made from the PVC fabric to Zev Supplies; downstream customers complained that ties tore, backing delaminated, fabric distorted, and gowns failed after industrial washing.
- Gredale asserted the gowns needed to survive industrial washes at 160°F for 25 minutes to be reusable; Deitsch disputes any such specification was communicated or warranted.
- Deitsch offered expert tailor testimony (Reynolds) that gowns made with its PVC fabric withstood multiple lower-temperature washes; court found Reynolds credible on tailoring but not on CDC/FDA gown standards.
- The court found Gredale failed to prove any express or implied warranty that the fabric would withstand 25 washes at 160°F, and entered judgment for Deitsch on its breach-of-contract claim for $162,598.38 and dismissed Gredale’s warranty counterclaim.
Issues:
| Issue | Plaintiff's Argument (Deitsch) | Defendant's Argument (Gredale) | Held |
|---|---|---|---|
| Subject-matter jurisdiction | Diversity jurisdiction exists (Deitsch is CT citizen; Gredale members non-CT) | Not meaningfully disputed | Court: diversity jurisdiction under 28 U.S.C. § 1332 exists |
| Breach of contract (nonpayment) | Deitsch delivered fabric; Gredale failed to pay $162,598.38 | Gredale did not raise a successful offset or defense sufficient to avoid payment | Judgment for Deitsch for $162,598.38 |
| Express warranty | No written or spoken warranty about surviving washes at 160°F | Gredale contends Deitsch warranted fabric suitable for industrial washes/reusable gowns | Court: Gredale failed to prove an express warranty; claim fails |
| Implied warranties (merchantability & fitness for particular purpose) | Fabric was merchantable and suitable; Deitsch did not know of any 160°F requirement | Gredale claims implied warranties that fabric must withstand industrial washes (160°F × 25 min) | Court: Gredale failed to show Deitsch knew of a 160°F requirement or that product was unmerchantable or unfit; counterclaim fails |
Key Cases Cited
- Richman v. Hartley, 224 Cal. App. 4th 1182 (2014) (sets elements for breach of contract claim)