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I awarded my work of pick pack and ship to 3Linx, who quoted

Customer Question
an storage fee of $10...
I awarded my work of pick pack and ship to 3Linx, who quoted an storage fee of $10 per pallet and it was also written that "Depending on the nature of the product, it may be possible to accomodate more than one SKU per cube of space and the total storage bill will be based on the number of 4'X4'X4' cubes allocated for the storage of Client's active SKUs. 3Linx will make every effort to minimize the number of cubes used to store Client's inventory while maintaining good wareshouse house keeping" but in actual case for my product 10 inch long 8 inch width and 0.5 inch high total voulume is 15 pallets but he is charging for 360 pallets
Submitted: 8 years ago.Category: Business Law
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9/8/2009
Business Lawyer: JD, Attorney replied 8 years ago
JD
JD, Attorney
Category: Business Law
Satisfied Customers: 1,335
Experience: B.S. Accounting and Business Law & Doctor of Jurisprudence
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Hello and thank you for coming to JustAnswer.

 

I see that your question has not been addressed. I understand you are having a problem with your pickup, pack and ship company concerning the amount they are charging for storage. Do you have a written agreement? Does it include a minimum storage capacity provision?

 

 

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Customer reply replied 8 years ago
Yes we do have contract and what ever I written above is from contract, like storage charges will be $10 per pallet and he will try to fit more than one sku in the one pallet to reduce the storage cost and my product size is very small because of which lot of skus can in one pallet space, all pick and pack units have different sizes of bins if he never has the bins than he should have not taken the job or should have informed us in advance which he did not even uptill now we do not know once I visited his place he only informed that I kept your merchandise in 96 x 4x 12x5 = 23040 sq ft devided by one pallet i.e 64 ft square comed to 360 pallet space which he is charging, and also not replying to my questions so that we can understand each other better, he can not just put our one piece in his warehouse and demand storage charge of whole warehouse.
Business Lawyer: JD, Attorney replied 8 years ago

I do not have a great deal of experience with this area and this is not a simple contract question but one involving performance issues specific to your field. I am going to opt out and send this over to our business law category in an effort to find someone who is more experienced with these types of issues.

 

Good luck.

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Customer reply replied 8 years ago
thanks
Business Lawyer: Richard - Bizlaw, Attorney replied 8 years ago
Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,682
Experience: 30 years of corporate, litigation and international law
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How many SKUs do you have? For each SKU how many items do you have? For each SKU how much room do you need? Is there anything about your products that make it difficult to distinguish one SKU from another so that if they were on the same pallet it would be difficult or time consuming to distinguish one from another?
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Customer reply replied 8 years ago
our product is nursing uniform "Scrubs", each piece is packed in a seperate poly bag size is 8inch by 10 inch and 0.5 inch thick, we can easily put one size with different colour in one position meaning 8 sku's in one place, normally the warehouse people have different sizes of bins available, but this warehouse has put some other company's products in smaller bins but for our products they never arranged the bin which they should have done before taking our business, now in the end they were doing it but it was not completed, we have 1200 sku's and can keep 8 in one place but this is not the question he is just saying that he kept my products in 96ft X 4ft X 12ft X 5ft =23040 sq ft devide by 64 sq ft (one pallet) comes to 360 pallets where as if we go on higher and higher side than our goods can not be more than 15 pallets
Business Lawyer: Richard - Bizlaw, Attorney replied 8 years ago
If you cannot negotiate a reasonable price reduction, you need to develop a storage plan that reduces the cost of the storage. The argument would be that they did not make every effort to minimize the cost of storage. In order to make this argument effectively, you have to develop how the various SKUs would be stored so as to reduce the monthly cost. Depending on the amount in controversy, you can go to small claims court. If you are in Philadephia the limit is $10,000 and elsewhere in the state it is $8,000.

If this answer is responsive to your question, please accept it. That is how we are compensated. I would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.
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Customer reply replied 8 years ago
the status is he is already stopped work with out any notice and now holding my goods and asking for huge storage pls let me know what to do
Business Lawyer: Richard - Bizlaw, Attorney replied 8 years ago
The fastest solution is to get release of your goods, move them to another location and then sue for the overcharge. If that is not possible and you cannot operate, you will have to go to court to seek an injunction to get release of your inventory to permit you to operate your business while the court resolves the issue. To do this you will have to post a bond which would probably be in the amount in dispute.

You should make clear to the owner of the storage that he will be sued for a lot more than what you consider the overcharge but also for damage to your business in terms of lost sales and customers. If he does not work out an accomodation, be sure to put in writing to him the ways you will be damaged and that you will hold him liable for those losses.

You can locate a lawyer in your area that handles litigation by going to lawyers.com.

Unfortunately, you do not have a lot of good options at this point.

If this answer is responsive to your question, please accept it. That is how we are compensated. I would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.
Richard - Bizlaw
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Satisfied Customers: 10,682
Experience: 30 years of corporate, litigation and international law
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