Polyloom Corp. of America v. Varsity Carpet Services, Inc.

Benham, Judge.

Appellant Polyloom Corporation of America (“Polyloom”), a manufacturer of yarn used in making artificial turf carpet, and appellees, a collective of companies which perform various manufacturing processes related to carpet production (“The Varsity Group”) were creditors of V & L Manufacturing Company (“V & L”), which manufactures and sells artificial turf carpet. Polyloom had been selling its “olefin” yarn to V & L on an open account for carpet production. Late in 1983, appellant became aware of V & L’s serious financial problems; on January 16, 1984, appellant had V & L execute…