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Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

The&nbsp;Crain’s Detroit Business&nbsp;article “Judge awards auto supplier $3.5M in dispute with wide implications” discussed Warner’s latest victory on behalf of client, AirBoss Flexible Products Co. in its pricing dispute with customer MSSC Inc.&nbsp;

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In 2023, the Michigan Supreme Court issued a precedent-setting ruling that MSSC’s contract with AirBoss was nonbinding. The more recent circuit court decision went a notch further, finding that MSSC’s refusal to pay AirBoss’ price increases resulted in unjust enrichment.

According to <a href="https://www.wnj.com/people/michael-brady/">Michael Brady</a>, who co-led Warner’s AirBoss team, the Supreme Court’s decision, coupled with the lower court’s award of damages, could give sellers more leverage in contract negotiations traditionally tipped in the buyer’s favor.

Brady said his client’s meticulous record-keeping of written correspondence with MSSC, as well as its prompt assertion of its rights and counterclaims helped win the case. “At the very least, the decisions affirm that suppliers can win disputes if they take the proper steps before, during and after execution of a contract,” he said.

The case arose out of a fairly typical pricing dispute centered on a "blanket" purchase order between the two companies. MSSC argued that the blanket order was a requirements contract binding AirBoss to fulfill its orders. AirBoss disagreed and successfully argued that because there was no quantity listed, it was a “release-by-release” contract and not binding long-term.

AirBoss sought to pass on the roughly $1 million in annual losses to its customer. While MSSC eventually agreed to a price increase, AirBoss continued to lose money on the business and ceased taking orders in 2020. The recent decision awarded AirBoss a judgment totaling the full gap between its desired prices and those it had been paid — approximately $3.5 million — plus interest accrued since 2020.

Crain’s Detroit Business subscribers can read the complete story <a href="https://www.crainsdetroit.com/manufacturing/auto-supplier-wins-35m-dispute-wide-implications">here</a>.&nbsp; &nbsp;&nbsp;&nbsp;

Warner’s appellate and litigation teams that represented AirBoss were led by Michael Brady, Gaëtan Gerville-Réache and Adam Ratliff. The firm’s <a href="https://www.wnj.com/industries/automotive/">Automotive Industry Group</a> attorneys stand ready to assist suppliers in assessing their current contracts and terms as a result of these decisions.&nbsp; &nbsp;

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Automotive

Supply Chain

Detroit

Executive Partner

Michael Brady

Partner

Gaëtan Gerville-Réache

Adam T. Ratliff

Appellate and Supreme Court Practice

Litigation and Dispute Resolution

Supply Chain Litigation

Michael Brady Discusses AirBoss Victory in a Crain’s Detroit Business Article

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Michael Brady Discusses AirBoss Victory in a Crain’s Detroit Business Article

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