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Quickutz Sued By Supplier Alleging Unpaid Bills, Fraud

Quickutz is the target of a lawsuit filed on July 15th by Bai-Win Mercantile, a trading company based in Hong Kong. The lawsuit was filed in U.S. District Court for the District of Utah, and alleges that Quickutz owes Bai-Win over $700,000 in debt that is over 90 days past due. The suit also alleges that Quickutz committed fraud in its dealings with Bai-Win.

Bai-Win said in its court filing that it began doing business with Quickutz in May 2006, and that the company began to fall behind on payments to it after a January 2007 order. Bai-Win also alleges in the court complaint that in 2008, Quickutz began to purchase some inventory via other companies to circumvent paying the debt that it owed Bai-Win.

The basis of the fraud claims made by Bai-Win are that they allege that Quickutz knowingly made “material false representations” to them about their future payment intention or ability in an effort to get them to ship orders that had been placed.

Bai-Win is seeking, among other stipulations from the court, the following in the suit:

  • An outstanding balance of $706,907.51 plus interest
  • The return of all inventory in Quickutz’s possession that was delivered to them by Bai-Win
  • Compensatory & consequential damages determined by trial, plus pre & post-trial interest
  • Punitive damages of $5 million
  • Attorney’s fees, expenses & costs

Quickutz is based in Orem, Utah and was founded in 2001 by Natasha & Mark Hixon and Eric Ruff. The company’s principal products are the Revolution and Squeeze die-cutting tools, along with 2×2 and larger sized dies and accessories for the systems.

Quickutz president Eric D. Adams replied that the company is “not at liberty to comment on pending litigation” in response to Scrapbook Update’s request for comment on the matter.

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