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20 July 2022
B.C. Court Rules Supplier Only Responsible For Cost of Material
OKANAGAN, B.C.—
Okanagan Label & Print Ltd a label printer that refused to pay an invoice over a past defective order will have to reimburse UPM Raflatac a supplier of label paper $184,100.23 plus interest calculated at 12% per annum from the date of each invoice, less a holdback of $8,909.54,” the the British Columbia Supreme Court has ruled. OKLP conceded that it owed UPM the money but said that other label paper it purchased from UPM was defective and, by counterclaim, it sought to recover the amount it paid for the allegedly defective paper ($8,909.54) plus additional damages for breach of contract.
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Printer od wine, spirits & cigar labels
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Major world manufacture of label paper
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Okanagan Label claimed $115,683.08 in consequential damages, including “product testing and investigation expenses, and the costs associated with removing defective labels from its customers’ bottles, printing new labels, and reapplying new labels.” “UPM’s liability cannot exceed the invoiced value of the products sold ($8,909.54)” the court said. This case could limit the liability for defective stock for paper suppliers in the future.
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