CareandWear II, Inc. v. Nexcha L.L.C.

Background

CareandWear II, Inc. d/b/a Care+Wear sued Nexcha L.L.C. over two purchase orders for examination gloves. On August 3, 2020, Care+Wear agreed to pay $260,000 for two million nitrile gloves and paid that amount the same day. Nexcha promised to ship the gloves by August 6, 2020.

On August 6, 2020, the parties entered a second purchase order for 810,000 nitrile gloves and 1,750,000 vinyl gloves. Care+Wear paid $267,175, and Nexcha promised shipment by August 8, 2020. Nexcha did not meet either delivery deadline. It later delivered 1,748,000 vinyl gloves—2,000 fewer than promised—but delivered no additional gloves. Nexcha refunded $48,000, leaving $317,485 unpaid for gloves that Care+Wear had purchased but did not receive.

Care+Wear moved for partial summary judgment. Summary judgment is a ruling without a trial when the evidence shows that no important fact is genuinely disputed and the moving party is entitled to judgment under the law. The motion was treated as unopposed because Nexcha did not file an opposition by the deadline. The court nevertheless reviewed whether Care+Wear’s evidence satisfied the summary-judgment standard.

Contract Claim

The court applied New York contract law. It found that the two written purchase orders established valid contracts because they stated material terms including the quantities, prices, and delivery dates. The court also found that Care+Wear performed its contractual obligations by paying the agreed amounts.

The court concluded that Nexcha breached both contracts by failing to deliver the promised gloves. It further found that Care+Wear suffered $317,485 in damages. The court therefore granted summary judgment on Care+Wear’s breach-of-contract claim and issued judgment for $317,485.

Interest and Remaining Claims

The court awarded prejudgment interest at nine percent per year beginning August 8, 2020, the later of the two agreed shipment dates. It selected that date because the record was unclear whether Nexcha’s $48,000 refund applied to the first or second contract. The court also awarded post-judgment interest under 28 U.S.C. § 1961(a), beginning when judgment was entered and continuing until payment.

Care+Wear had not moved for summary judgment on its unjust-enrichment and fraudulent-inducement claims. Because the court granted all requested damages on the breach-of-contract claim, it assumed those remaining claims might be moot, but it did not dismiss them in this opinion. Instead, it ordered Care+Wear to file a letter by January 31, 2022, explaining whether those claims had become moot and whether the case could be closed. The court also directed the clerk to close the pending motion at docket 37.