Companies Sued Following Breach of Ventilator Contract

A suit was filed Tuesday against defendants Health Medical Equipment, Inc. (Health Equipment), Crown Global Holdings, Inc., and the president of Crown Global, Fernando Gonzalez. Plaintiff Global Biologics, LLC filed the suit in the Eleventh Judicial Circuit of Miami-Dade County in Florida, alleging that the defendants breached contractual obligations they had concerning the supply of ventilators and other equipment to the plaintiff’s clients .

In 2020, Global Biologics negotiated a sale of 50 Trilogy Evo Life Support Respirators to one of its clients, a company called Nutreceutics. Per a contract, the respirators in the sale would be supplied by Health Equipment and Crown Global. The plaintiff explained that two companies stated they would order and ship the respirators to Nutreceutics. The profits of the respirator sale would be divided among Global Biologics, Crown Global, and Health Equipment.

The first segment of the order was fulfilled when 50 respirators were delivered to Nutreceutics, at which point the “transaction occurred precisely as the parties agreed upon.” They ultimately determined that they would use the profits from the first order to fulfill the second order. When the second order was completed, they agreed to “split the profits in equal parts, one half the profits unto Plaintiff and the other half unto Health Equip. and Crown Global.”

When the defendants were placing the second order for the respirators, they informed Global Biologics that they paid the manufacturer $324,750for the order. However, the manufacturer confirmed that in actuality, the defendants only made a payment of $65,000 for the respirators. The smaller payment only covered the cost of 10 respirators, failing to reach the contractual amount Nutreceutics had agreed to of 50 respirators. The plaintiff explains that “to date, the profits form the first order have not been tendered to Plaintiff, and additionally, Health Equip. and Crown Global did not reinvest the funds towards the placement of the Second Order.”

A second agreement between the plaintiff and a company known as World Target called for a delivery of products worth $25,078. Prior to delivery, the company paid the defendants $12,369for the products as had been previously arranged. The rest of the sum would be fulfilled when the order was fulfilled. World Target only ever received a small amount of products totaling $339, despite having already paid $12,369. The remainder of the order was never fulfilled. Given that a significant amount of time has elapsed since their order, the company is now requesting a refund from the plaintiff.

Global Biologics is charging Health Equipment, Crown Global, and Gonzalez with breach of both the Nutreceutics and World Target contract, conversion, fraud/constructive fraud, quantum merit, unjust enrichment, and fraudulent inducement and misrepresentation.

The plaintiff is represented by Garcia-Menocal Irias & Pastori LLP.