CHICAGO (Legal Newsline) – Two companies that peddled flashlights, work lights and batteries during the COVID-19 pandemic now find themselves in a $6 million fight.
Promier Products, the developer of those products, sued Orion Capital on Feb. 24 in Chicago federal court, alleging Orion seeks half of the money made selling to state agencies.
The lawsuit says Orion was hired on a commission basis and earned a small percentage of profits for sales it facilitated.
“Orion Capital contributed only a pittance to the millions of dollars of (personal protective equipment) that Promier purchased and sold to customers, was not responsible for importing materials, had no risk in the enterprise, and did not direct the enterprise,” the suit says.
Orion’s responsibility was finding customers and occasionally helping to collect payments, the suit says. Orion is now threatening a $6 million lawsuit under the theory that the business arrangement constituted a joint venture.
Promier’s lawsuit seeks a declaration that Orion was not its partner. It was filed by Trace Schmeltz III of Barnes & Thornburg in Chicago.