A Gordon & Rees Nevada team comprised of Las Vegas Partners Rob Larsen, Wing Yan Wong, Senior Paralegal Cristina Pagaduan, and Reno Partner Brian Walters recently obtained an outstanding result for a firm client, an international machinery and equipment manufacturer based in Viersen, Germany. The plaintiff sued the firm’s client seeking to rescind the sale of an $860,000 equipment line designed and manufactured by the client to produce chocolate covered fruit balls. The plaintiff sought rescission on the basis that the equipment did not produce the fruit balls at a rate specified in the contract.
Gordon & Rees originally prevailed on a motion for summary judgment based on a contractual one-year limitation provision set forth in the client’s terms and conditions. Although the Ninth Circuit Court of Appeals reversed the decision, finding that genuine issues of material fact existed as to whether the terms and conditions were incorporated into the contract, the team filed a renewed motion for summary judgment arguing that the plaintiff accepted the equipment and did not effectively revoke acceptance under the Uniform Commercial Code (UCC).
The district court granted the renewed motion for summary judgment, completely adjudicating the plaintiff’s claim. In a detailed 13-page order, the district court held that the plaintiff accepted the client’s equipment and failed to effectively revoke acceptance as a matter of law under the UCC. The plaintiff did not appeal the order.
The client is thrilled with the result as it avoided a nearly one-million-dollar liability.