December 2013 Settlement of Interest: Anticipatory Breach Of Contract of an Asset Purchase Agreement

December 22,  2013
Gro-Well Brands, Inc. v. Vaporizer LLC, United States District Court, Southern District Of New York  
Itkowitz PLLC brought suit on behalf of Gro-Well Brands, Inc. and related companies against Vaporizer LLC claiming Vaporizer breached an asset purchase agreement with Gro-Well, which required three annual installment payments of $250,000.00 commencing on October 16, 2013.  Itkowitz PLLC, which handled the sale of the Gro-Well division in October 2012, filed the suit on October 22, 2013, just days after Vaporizer’s first installment payment of $250,000.00 came due on October 16, 2013 and was not paid.  The suit was filed on behalf of Gro-Well, headquartered in Arizona, in the United States District Court in the Southern District of New York on the ground of diversity of citizenship inasmuch as Vaporizer’s principal place of business is in Connecticut.  Gro-Well sued for a minimum of $750,000.00 on the ground of anticipatory breach of contract because the first payment was not made.  On or about the day the defendant was scheduled to file an answer in federal court—December 11, 2013—the case settled on terms satisfactory to Gro-Well.