UCC • Breach of Contract • Interest • Preliminary Objections

Int’l Paper Co. v. Pocono Springs Co., PICS Case No. 14-0187 (C.P. Monroe Jan, 3. 2014) Zulick, J. (4 pages).

International Paper filed a complaint against Pocono Springs alleging breach of contract for the sale of goods. Pocono filed timely objections arguing that International Paper failed to adequately plead the essential terms of the contract, that International’s exhibits contradicted the pleading and the request for an interest rate of 18 percent was unsupported by the complaint. Objections denied.

Pocono Springs argued that neither exhibit attached to the complaint was a contract. However, the contract in this case was alleged to be an oral one. Additionally, as a sale of goods, the transaction was governed by the Uniform Commercial Code. The U.C.C. does not require that a contract for a sale of goods be in writing to be enforceable. International Paper attached invoices to its complaint. This was sufficient for the complaint to survive preliminary objections.

The invoices attached to the complaint stated that a 1.5 percent service charge would apply on a monthly basis for late payment. Over a 12-month period, this would equal the 18 percent interest rate requested by International Paper.

The complaint alleged that Pocono Springs received delivery of goods together with the accompanying invoices attached to the complaint. Accepting these facts as true, Pocono Springs accepted the goods on credit accompanied by an invoice spelling out the terms of the purchase. International Paper’s complaint was sufficient to survive the preliminary objections.