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Law360 (February 11, 2021, 1:27 PM EST) -- Medline Industries Inc. is suing a medical equipment supplier over more than $15 million in medical isolation gowns it had agreed to purchase, saying the supplier promised high quality gowns but delivered ones that were unusable.
In a complaint filed in Illinois federal court Wednesday, Medline said that Amwear Safety Pro Inc. had initially given it design samples of the gowns that met Medline's standards and specifications, but the gowns that came off the production line had significant changes in the design and manufacture, to the point that the intended customer refused to take them.
According to the complaint, as a result of the high demand for personal protective equipment, or PPE, created by the COVID-19 pandemic, Medline became interested in maximizing its supply, and was then approached in August by Amwear, which offered to sell single-use isolation gowns to Medline for purchase by Medline's customers.
Amwear assured Medline that its gowns would be high quality, and that it had a manufacturer in China affiliated with Amwear's owner that was ready to produce them, which Medline said in the complaint it later learned was untrue.
According to the complaint, Amwear provided design samples before the deal was struck, and Medline approved the samples, before making two purchase orders for October and November totaling $15.4 million.
However, Medline then became suspicious about Amwear's representations and requested a sample of a gown off the production line, which was provided, and Medline found that the gowns were manufactured inside out, with ties on the inside instead of the outside, making it impossible for medical workers to quickly and efficiently put the gowns on correctly, according to the complaint.
Medline said it is important for medical staff to be able to quickly and safely get in and out of the gowns because they are single use, with each patient visit often requiring a nurse or doctor to put on a new gown. According to the complaint, Medline showed the gowns to its intended customer and several others, and nobody agreed to buy them.
In the suit, Medline is making claims for breach of contract and breach of express and implied warranty and is asking the court for a declaration that it made a valid rejection of the gowns, is justified in refusing to accept them, and does not owe Amwear any of the money for the gowns.
In addition, it's seeking more than $4.8 million in damages for the freight, shipping and storage costs it has incurred from the gowns that have already shipped and the revenue lost from the inability to supply its customers.
Representatives for Medline and Amwear could not immediately be reached for comment Thursday.
Medline is represented by James Thompson, Amy J. Kanarowski and Mindy S. Schwab of Lynch Thompson LLP.
Counsel information for Amwear was not available Thursday.
The case is Medline Industries Inc. v. Amwear Safety Pro Inc., case number 1:21-cv-00762, in the U.S. District Court for the Northern District of Illinois.
--Editing by Alyssa Miller.
For a reprint of this article, please contact reprints@law360.com.
