A commercial dispute over the production and delivery of kosher dairy products has led to a lawsuit alleging defective manufacturing practices and abrupt termination of business ties. The case was filed by Paradise Distributors, LLC, doing business as Yummy Foods Inc., in the United States District Court for the District of New Jersey on April 6, 2026, naming Old Chatham Creamery, LLC as the defendant.
According to the complaint submitted by Paradise Distributors through its attorneys at Porter Thomas Grabell & Baumwoll, the company alleges that Old Chatham Creamery failed to properly manufacture, handle, cool, and deliver Leben dairy products under an ongoing commercial relationship. The suit outlines six causes of action: negligence, anticipatory repudiation, breach of implied warranty of merchantability under Uniform Commercial Code section 2-314, breach of contract, promissory estoppel, and fraud in the inducement.
The dispute centers on an arrangement that began in May 2024 when Paradise Distributors engaged Old Chatham Creamery to produce non-cultured kosher Leben for distribution and resale. The complaint states that this relationship involved regular purchase orders and coordination regarding ingredients and packaging materials. The parties reportedly enjoyed more than a year of successful cooperation before issues arose in September 2025.
Paradise Distributors claims that during this period Old Chatham Creamery proposed new packaging options due to increased demand for Leben products. However, following a large order in September 2025—when Plaintiff had informed Defendant about increasing ingredient shipments—retailers began reporting problems with the delivered product. More than thirty retailers allegedly complained about mold growth, sour odor, taste defects, instability, and inconsistent texture across multiple units.
The complaint asserts that these issues were traced back to a change in cooling procedures by Old Chatham Creamery without prior notice or consultation with Paradise Distributors. An email from Ethan Ott on behalf of Old Chatham reportedly acknowledged this deviation: “We packed these cups directly off the filling line… For previous batches… not to be case packed until after cooling. This seems to be the biggest reason why these batches were different…” Ott further stated: “We do take responsibility for the bad product” and “we now understand the mistake we made.”
Paradise Distributors also alleges that despite over a year’s worth of production runs using consistent recipes and cooling protocols without widespread spoilage or failure, Old Chatham’s unannounced change resulted in significant financial losses due to spoiled product being returned from market as unsaleable. Defendant is said to have authorized disposal of affected goods and admitted at least 57 twelve-pack cases from prior runs were dumped.
After acknowledging responsibility for the spoiled batch in September 2025 correspondence—including stating “we have struggled to understand how to handle this product since we started making it”—Old Chatham Creamery notified Paradise Distributors it would no longer continue producing Leben: “We will not continue making the product now that we understand the risks associated.” According to Plaintiff’s filings, this decision came abruptly after substantial investments had been made into raw ingredients and packaging materials based on assurances from Defendant.
The complaint describes efforts by Paradise Distributors to communicate their concerns about financial losses resulting from discontinued production. In November 2025 correspondence cited as Exhibit E within court documents, Plaintiff detailed anticipated losses totaling over $330,000 in unused ingredients and supplies if production ceased. Despite these communications outlining specific damages—including $198,000 worth of stabilizer and tens of thousands more in sugar and packaging—Plaintiff alleges Defendant did not respond or offer remedies.
Paradise Distributors contends that Defendant’s actions constitute negligence by deviating from established protocols; anticipatory repudiation under UCC §2-610 by clearly communicating intent not to perform contractual obligations; breach of implied warranty due to delivering unmerchantable goods; breach of contract through refusal to fulfill accepted orders; promissory estoppel based on reliance upon repeated operational promises; and fraud in inducement related to initial representations about manufacturing capabilities.
For each cause of action described above—including direct quotations from internal emails—the Plaintiff seeks compensatory damages believed to exceed $500,000 plus lost profits, interest, attorney’s fees (to be determined at trial), and any other relief deemed appropriate by the court. A jury trial has been demanded on all triable issues.
Attorneys David Baumwoll and Arthur “Scott” L. Porter Jr., both listed with Porter Thomas Grabell & Baumwoll P.C., are designated as trial counsel for Paradise Distributors. The case is identified as Civil Action No.: 2:26-cv-03617.
Source: 226cv03617_Paradise_Distributors_LLC_v_Old_Chatham_Creamery_LLC_Complaint_District_New_Jersey.pdf
