Starchem Laboratories, LLC v. Kabco Pharmaceuticals, Inc.
New York Supreme Court
43 Misc. 3d 1213(A) (2014)
Relevant factsFree
Starchem (plaintiff) owed Kabco (defendant) $3,000 and an affiliated company nearly $28,000 when it placed a new $190,000 purchase order with 30-day payment terms; Kabco procured ingredients but refused to begin manufacturing until Starchem paid $165,000 upfront and settled its affiliate balance, and after Starchem merely requested more credit without responding to Kabco's renewed request to settle the affiliate debt, Starchem sued for breach of contract, arguing Kabco unilaterally altered the contract terms.
IssueFree
Whether, under UCC Section 2-609(1), a party with reasonable grounds for insecurity may demand adequate assurances of the other party's performance.