LOS ANGELES — A family-owned furniture manufacturer has filed suit against Design Within Reach Inc. alleging breach of contract.
Elite Leather Co. filed a complaint on Aug. 14 in U.S. District Court for the Central District of California against Design Within Reach Inc., alleging that the retailer breached the implied covenant of good faith and fair dealing.
According to the complaint, the plaintiff alleges that in 2013, Elite Leather Co. started manufacturing furniture for the defendant, but when consumer complaints surfaced regarding slats for the bed, the plaintiff allegedly fixed the issue by implementing retrofits. However, the plaintiff claims the defendant refused to pay the pre-approved and agreed upon costs of labor and materials that amounted to $25,000 and instead, the defendant allegedly threatened the plaintiff with a lawsuit of $1,000,000 for the allegedly defective products. The plaintiff claims it does not owe the defendant money for alleged return rights. The plaintiff holds Design Within Reach Inc. responsible because the defendant allegedly refused to pay for the retrofit.
The plaintiff requests a trial by jury and seeks relief and judgment, for declaratory judgment that the plaintiff does not owe the defendant money, for $25,000 as the agreed costs of the retrofit, the balance of the materials bought by the plaintiff, costs of suit, damages and other relief as the court deems appropriate. The plaintiff is represented by Richard P. Sybert, Benjamin T. Morton and Yuo-Fong C. Amato of Gordon & Rees LLP in San Diego.
U.S. District Court for the Central District of California case number 5:16-cv-01743