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Old 11-08-2005, 12:19 PM
prozier
 
Posts: n/a
Defense against Dishonest supplier

I function as president of a colorable entity that is engaged in the business of engineering mechanical products. About one year ago we contracted with a major supplier of mechanical systems to the Heavy truck sector. The project required the complete design of a seat system along with the prototype build of nine show quality level finished seats. We outsourced the prototype build portion of the project to various subcontractors that have expertise in specific areas of need. The primary subcontractor that built most of the physical parts and performed assembly processes is suing our firm for breach of contract for remaining monies on the account. Our firm took heavy loses on this particular project and there was additional intrigue from the suppliers side that appears to have aided in the reasons for the failure of the project. They are as follows:

1) This particular supplier was added at the last minute by one of my former contract managers
2) This manager appears to have had a financial business relationship with the plantiff through the managers' spouses' interior design firm.
3) We accepted the last minute change of lead subcontractor because the manager vouched for the technical build expertise of the supplier. We later found out through other employees that the supplier had never built any product like the one that we needed supplied.
4) I drafted a letter of commitment to pay the remaining monies before I learned of the conflict of interest relationship (which "they" the supplier modified)
5) The final product was not delivered on time to the customer by the supplier; nor did it meet the visual quality requirements needed to show it at the largest aftermarket mechanical products event in the country.

Subsequently, we were desourced by our end customer which has directed resulted in the loss of access to more than 10 million in business. Additionally, this customer controls more than 80% of the seating market for Heavy Trucks.

I received a summons and am requested to file an answer to the court but it appears that the attorney sat on the paperwork and delivered it right before the 28 day cutoff. If a judgement has been entered for our company how do I defend this and is it reasonable to file a countersuit.

I am in need of a reply as soon as possible. Please email me at pauroz@intentcorp.com

Best regards,

Prozier
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