SAN JOSE – A light fixtures company owes a supplier and shipper more than $9 million in invoices, according to a lawsuit filed on Aug. 20 in the U.S. District Court of Northern California.
Jiaxing Super Lighting Electric Appliance and Green Deal filed their breach-of-contract lawsuit against Lunera Lighting alleging the defendant failed to meet the terms of a purchase and development agreement.
Super Lighting and Green Deal reached the agreement with Lunera on Nov 15, 2016. Lunera Lighting agreed to buy lighting products from Super Lighting while Green Deal was responsible for shipping the lighting products to Lunera under the agreement, according to the complaint.
“In late 2017, however, Lunera stopped paying for these deliveries,” the complaint states.
Although Super Lighting claims it agreed to give Lunera more time to make payment on the deliveries it had received, “Lunera failed to comply with its own proposed terms, or otherwise remedy its delinquencies,” the lawsuit said.
“Lunera currently owes more than $9,658,766.43 in unpaid invoices, all of which are past-due per the agreement,” the lawsuit said. "In addition, because of several orders Lunera improperly cancelled (or the equivalent thereof) under the Agreement, Super Lighting currently maintains $3,253,076.77 in inventory (a combination of finished goods ($1,384,501.28), unfinished goods ($47,526.50), and raw materials
($1,821,048.99) for Lunera) that it is unable to use or sell to other customers."
Plaintiffs agreed to a payment plan to cover $11.9 million in payments due as suggested by Lunera on a payment schedule from April through July 25, according to the lawsuit.
Another $337,110 was expected to be due by the lawsuit filing date, according to the lawsuit.
In addition, Jiaxing Super Lighting and Green Deal claim Lunera ordered $3.25 million in inventory and then cancelled those orders, leaving Jiaxing Super Lighting with the outstanding inventory “that it is unable to use or sell to other customers.”
Inventory held for Lunera cancelled orders that includes $1.38 million in “finished goods,” $47,527 in “unfinished goods” and $1.82 million in raw materials, according to the lawsuit.
Jiaxing Super Lighting and Green Deal said the purchase and development agreement they have with Lunera carries a two-year initial term, “to be automatically renewed in successive one-year terms, unless a party provided timely, written notice that it did not wish to renew.”
On July 20, Super Lighting gave Lunera 30 days to make the payments. Since Lunera did not meet those payment terms, the plaintiffs said the agreement has been terminated.