Jade Fashion & Co. v. Harkham Industries, Inc.

Appellants Harkham Industries, Inc., and Uri Harkham (collectively Harkham Industries) appeal from the trial court’s grant of summary judgment in favor of respondent Jade Fashion & Co., Inc. We affirm.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

I. The Parties’ Agreement

Jade Fashion is in the business of manufacturing and selling garments to other businesses. Starting in Spring 2010, Jade Fashion and Harkham Industries entered into a series of purchase order agreements under which Harkham Industries purchased certain garments from Jade Fashion at specified quantities and prices. In 2011, Harkham Industries had cashflow problems and fell behind on its payment obligations to Jade Fashion. As of November 28, 2011, Harkham Industries owed Jade Fashion the principal balance of $341,628.77 for the goods.

In November 2011, Sandra Khalili, counsel for Jade Fashion, and David Meniane, the chief financial officer at Harkham Industries, had several communications about the outstanding debt that Harkham Industries owed to Jade Fashion. According to Meniane, Khalili initially demanded that Harkham Industries pay off the entirety of the debt by the end of 2011. After further…