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October 26, 2023

HVAC company sues Clinton cannabis grower for lack of payments on $444K

a cannabis bud Photo | Courtesy of Green Meadows A cannabis flower strand known as Canuk Cookies growing at Green Meadows' cultivation facility in Southbridge.

Chiller Technology, a Woburn-based company specializing in the sale and installation of commercial chillers and HVAC equipment, is suing Milkmen Cultivation, a Clinton-based cannabis cultivation company, over a lack of payment for services.

The lawsuit, filed in Middlesex County Superior Court on Tuesday, alleges Milkmen fell behind on payments around January. The lawsuit alleges that Milkmen convinced Chiller to give the company a discount on pricing in exchange for allowing them to be the exclusive provider of HVAC equipment and services for Milkmen. However, Chiller claims when an agreement was drafted to formalize this arrangement, Milkmen allegedly refused to sign it.

The lawsuit says Chiller incurred several hundred thousands dollars of expenses before deciding to suspend work on the project, and Milkmen has failed to make payments despite repeated demands.  

An affidavit filed by Chiller’s council includes a demand letter and copy of invoices that were sent to Milkmen in June. The combined total of the three invoices shows Milkmen owing Chiller $444,484. 

The affidavit claims Milkmen has been attempting to sell the business. 

The lawsuit includes four counts: breach of contract, unjust enrichment, covenant of good faith, and a violation of Chapter 93A, the state’s consumer protection law.

Chiller is seeking an amount that is equitable and just, plus interest and attorney’s fees, according to the lawsuit.

Milkmen received a final license for cultivation and product manufacturing from the state’s Cannabis Control Commission in March 2022, according to commission documents.

Milkmen did not respond to a request for comment sent to an email address that was included in their cannabis license application materials. Its website is no longer active.

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