Green Innovation sues Canadian firm for $2.5M over contract termination
The Puerto Rico-based company alleges a violation of the Dealer’s Act.
Green Innovation Technologies Inc. (GIT), a Guayama, Puerto Rico-based corporation, has filed a lawsuit in the U.S. District Court for the District of Puerto Rico against Purifics Water Inc. (PW), a Canadian company, seeking $2.5 million in damages.
The legal dispute stems from the alleged “unilateral termination of the Distribution Contract between the parties, without just cause,” which GIT argues “constitutes an unlawful action” in violation of Puerto Rico’s Act 75, known as the Dealer’s Act.
According to the complaint, GIT and PW entered an “Independent Sales Representative Agreement” on June 9, 2020. Under this agreement, PW “granted GIT authorization to promote and sell PW’s products as an exclusive authorized independent agent in the Commonwealth of Puerto Rico.” The deal also permitted GIT to “procure the products and resell them to its clients” on the island.
GIT asserts that it “invested significant resources, time, and effort to establish and expand Defendant’s market presence in Puerto Rico.” The agreement was designed to renew automatically each year unless either party objected.
Despite GIT’s claims of full compliance with its contractual obligations, the company received a termination notice on May 22, 2024. GIT argues that this “termination was carried out in violation of Act 75,” which protects dealers from arbitrary termination unless “just cause” can be demonstrated, defined as a “nonperformance of any of the essential obligations” or acts that “adversely and substantially” affect the principal’s interests.
“Plaintiff qualifies as a ‘dealer’ under Act 75,” the lawsuit states, highlighting that GIT “effectively took charge of the distribution of Defendant’s merchandise/services in Puerto Rico.”
As a result of the alleged unlawful termination, GIT claims to have suffered significant financial and reputational harm. The damages detailed in the filing include loss of expected capital gains amounting to $1 million, operational disruptions estimated at $300,000, reputational damage of $700,000 and “other consequential damages” of $500,000.
“These damages total $2.5 million and reflect the financial and reputational harm suffered by GIT, directly attributable to PW’s unlawful termination of the agreement,” the lawsuit claims.
GIT also alleges that it attempted to resolve the matter amicably by sending an extrajudicial claim to PW on Dec. 19, 2024.
“Defendant never responded,” the complaint states.
GIT is seeking compensatory damages, attorney’s fees, and pre- and post-judgment interest. The company has also requested a jury trial on all triable issues.
