NuLeaf files lawsuit against Surna, Inc.
Special to the NNBW
- NuLeaf, Inc., has launched a civil action lawsuit against Surna, Inc., to recover $401,000 paid to Surna for a climate control system that was never delivered. In an evidence-based and fact-specific attack, NuLeaf has detailed claims for breach of contract, breach of the implied duty of good faith and fair dealing, unjust enrichment, promissory estoppel, conversion, negligent misrepresentation or concealment, and intentional misrepresentation. The matter arises out of a contract to have Surna design and install a climate control system for NuLeaf’s newly constructed grow facility in Sparks, Nev. NuLeaf claims that Surna extracted $401,000 from it based upon promises Surna knew it could not keep. For additional information, visit http://www.nuleafnv.com/info.
Surna, a technology company that engineers equipment for controlled environment agriculture with expertise in cannabis cultivation that’s based in Colorado, initiated the lawsuit in Denver claiming that NuLeaf failed to pay for its system. NuLeaf submitted counterclaims establishing that NuLeaf paid $401,000.00 when it was revealed that the Surna system leaked toxic chemicals and would not work for the NuLeaf location. When NuLeaf sought a refund, Surna sued.
The parties are in the initial stages of the lawsuit. Through its counterclaims, NuLeaf has established that Surna used tactics to extract $401,000 from NuLeaf, claiming that it could deliver. Surna’s secured capital raise was underway and was based in part on a representation that the NuLeaf contract would be successfully completed with the installation of the Surna reflectors and dehumidifiers. When NuLeaf declined to accept Surna’s proprietary reflectors and its dehumidifiers due to concerns they would adversely impact a successful operation in Sparks, Surna asked NuLeaf to take delivery of a few reflectors so that it would not have to revise its securities filings. When NuLeaf demanded to see serial numbers for components that Surna claimed to have purchased for the Sparks location, Surna declined.
In the suit, NuLeaf asserts that Surna fraudulently extracted $401,000 on promises of delivery that could not be met, and has engaged in civil theft by refusing to return the funds when requested. Surna has denied these allegations.
Since launching its new pediatric products two years ago, Neo Medical has seen a 35% growth in sales; moreover, the company has seen revenue grow 15% year-over-year since relocating to Sparks in late 2012.