Law Street Media

Ice Cream Maker Creamalicious Sued for Breach of Contract

A beverage processing plant.

Industrial machine conveyor with plastic bottles in beverage factory, industry equipment.

On Monday, CooLab Foods, LLC. filed a complaint in the Northern District of Illinois against Creamalicious, Inc. and their executives for alleged breach of contract for failing to pay invoices of tens of thousands of dollars.

CooLab Foods, per the complaint, signed a contract in in the spring with Creamalicious to help them manufacture their brand of artisan ice cream, where CooLab would purchase the necessary supplies and ingredients and manufacture ice cream using Creamalicious’ recipes.

This arrangement, the plaintiffs say, was intact until the end of May, when Creamalicious allegedly stopped paying their invoices. Between then and June 14, the defendant “failed to fulfill its obligation under the agreement by refusing to pay for the goods and services set forth” in eight invoices, totalling $149,383.75 dollars with an 8% default interest rate.

According to the complaint, Creamalicious also did not pay for “approximately $10,000 in finished products that remain in CooLab freezers and approximately $800 of FedEx shipping costs.”

The complaint also said that CooLab and Creamalicious entered into a settlement agreement on June 10 to pay for the outstanding balances in exchange for CooLab to send all remaining ingredients and products over to Creamalicious. The defendant allegedly signed the agreement. But, on June 15, “after Creamalicious had received all of the goods, CooLab was informed that Creamalicious had reversed the ACH payment for the initial settlement payment.” In order to get what they are owed, the plaintiff is suing for breach of settlement agreement, breach of contract, unjust enrichment, and promissory fraud.

The plaintiff is seeking actual, compensatory and punitive damages, pre- and post-judgment interest, attorney’s fees and costs, and other relief.

CooLab Foods is represented by Tabet DiVito & Rothstein LLC.

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