Kettering Adventist Healthcare v. Jade Designs, LLC

677 F.Supp.3d 735 (2023)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

P is a healthcare system that operates hospitals and physician practices. P needed personal protective equipment (PPE) for use in its various hospitals. Trisha Gillum, the Executive Director of Supply Chain and Materials Distribution for P, reached out to Ds. P placed an order with Ds for 30,000 N95 masks. P increased the quantity of masks it needed to 330,000 N95 masks. Ds understood P's main request to be for 3M-made N95 masks. Ds were unable to fulfill the order, and P received a refund of the amount it had paid to Ds. D emailed Gillum, 'our corporate office has been able to acquire the 3M 1860's so if the need arises again in the future, please let me know.' P again reached out to Ds and agreed to purchase 300,000 3M-made N95 masks for $1,180,000. Ds emailed P an order confirmation reflecting an order of 300,000 '3M 1860 N95 Particulate Respirator/Surgical Masks,' for a price of $1,185,000. P issued a 'Purchase Order Modified' form to Ds for 300,000 'Mask N95 3M' for a cost of $1,185,000 to be delivered on December 27, 2020. On January 13, 2021, P informed Ds that the 3M masks shipped by Ds were counterfeits. P requested verification that the masks were not counterfeit. P took the step of submitting information about the masks to 3M's COVID-19 Fraud Response Team. The masks were reviewed by 3M's Fraud Response Team, and 3M concluded the masks were counterfeit products and advised P not to use them. On February 8, 2021, P demanded a full refund of the $1,185,000 paid to Ds for the masks and an additional $18,064 that P expected to incur in fit testing employees with new masks. Plaintiff filed its Complaint on May 3, 2021, alleging breach of contract, fraud, and fraud in the inducement, negligent misrepresentation, conversion, replevin, and unjust enrichment. The parties filed their motions for summary judgment.

Issues

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Holding & Decision

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Legal Analysis

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