Dispute over Millions in Undelivered PPE Masks Heads to Federal Court

On Tuesday, a New York Supreme Court case was removed to the Eastern District of New York. The case was filed by WynnMed against the DRE Health Corporation regarding a failure to deliver medical grade personal protective equipment (PPE) per a purchase order contract.

WynnMed purchased 216,000,000 gloves from DRE Health Corporation as a part of its purchasing needs for COVID-19 safety protocols. The gloves, spread across 60 shipping containers, were purchased for a total of $12,262,320.00 with a 30% down payment, 60% to be paid while the gloves were in transit, and 10% to be paid on delivery. The 60 containers were to be delivered on a staggered schedule, with the last set to be delivered by February 28. The first 21 containers were delivered, however All-Ways, the shipper for this contract, noted a delay in arrival of the containers starting in mid-February. An additional nine containers were delivered late, and the remaining 31 containers have not been delivered, the complaint said.

WynnMed has made the down payment and in transit payments for the goods, but has not released the remaining 10% payment for the remaining containers. Wynnmed has confirmed the shipping numbers for the containers, which WynnMed indicates appear to be at the port of Los Angeles. However, DRE has not authorized release of the containers to All-Ways for delivery to WynnMed. Nor has DRE returned the payment for the remaining containers.

WynnMed is suing under causes of action for conversion, breach of contract, rescission, and unjust enrichment. WynnMed is represented by the law firm of Venable LLP. DRE Health Corporation is represented by Jones Day.