Legal Question in Business Law in Texas

Holding Inventory

We are a company that outsources the manufacturing of its branded products. One manufacturer has a history of raising the prices of the products over the amount stated on the PO, just before shipping, and has delivered products months after the agreed delivery date resulting in lost sales during the holiday season. The inventory cost of the lost sales had to be extended through the new year. The manufacturer is also serving as a fulfillment center to ship the products. The manufacturer is now holding inventory and refusing to ship to our paying customers and charging interest on money that is owed for the late and overcharged inventory. There is no possible way to pay any debt if they will not fulfill orders for our customers. Is there any case against the manufacturer for overcharging, late shipments, and refusing to ship products?


Asked on 12/29/08, 5:59 pm

1 Answer from Attorneys
Eddy De Los Santos Spain Hastings Ward Carey & Chambers

Re: Holding Inventory

The answer to your inquiry depends on any contracts/agreements between your company and the manufacturer in question. Additionally, what has the course of dealing been between the parties over the years? Depending on the facts/circumstances involved, your company may have claims for breach of contract, tortious interference with existing contract, and conversion.

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Answered on 12/30/08, 6:16 pm


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