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Johnson-McClean Technologies Inc. v. Millenium Information Technology Group Inc.

Plaintiff failed to show that defendant breached its promise to pay for labor and materials.

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Judge Baer

JOHNSON-McCLEAN TECHNOLOGIES, INC. v. MILLENNIUM INFORMATION TECHNOLOGY GROUP, INC. — Johnson- McClean Technologies, Inc. (“plaintiff” or “Johnson-McClean”) brought this action against Millennium Information Technology Group, Inc. (“defendant” or “Millennium”). A bench trial was held on November 14 and November 15, 2002, and the parties’ post-trial memoranda were received on November 27, 2002, at which point the matter became sub judice. The complaint alleges the following causes of action: (1) defendant’s breach of two promissory notes executed by the parties on March 1, 2000 in the principal amounts of $84,460 and $100,000, respectively; (2) defendant’s breach of a promise to pay plaintiff in the amount of $15,762 on invoices for materials and labor furnished to defendant by plaintiff; and (3) defendant’s breach of the implied covenant of good faith and fair dealing. Defendant denies each of these claims, and has asserted the following two counterclaims: (1) plaintiff’s breach of its obligations under the parties’ pledge agreement; and (2) plaintiff’s breach of the implied covenant of good faith and fair dealing. Plaintiff has alleged damages in the amount of $200,222 (the principal amounts of the two promissory notes in addition to the amount of the invoices for materials and labor) plus interest; defendant has alleged damages in an amount not less than $100,000. For reasons detailed more fully below, I find that defendant is in default of both notes in the total sum of $99,793.36, although do not find that defendant has breached its promise to pay plaintiff a total of $15,762 in the form of labor and materials. Further, defendant has failed to prove, by a preponderance of the evidence, its two counterclaims.

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