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We had a contract with a warehousing/logistics company. They…

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We had a contract with...
We had a contract with a warehousing/logistics company. They store and ship goods for us. We had over 1.5 million dollars worth of goods with them and had been working with them since 2014. Recently they kept urging us to pre-pay more as our volumes were increasing. We sent over 20k USD. The day after the received the fund they said they were terminating our agreement and we had 30 days to move out all our inventory. We made arrangements within a week but they actually took over 2 months to process our removal. In addition they have lost over 10k of our products. And last Christmas they made us miss the entire season of sales for a completely seasonal product. Now they are saying that the processing of the removal of our products and storage during that time cost 18k. Huh? They delayed us two months, they lost our products and they caused such a sudden disruption to our business. In their email they revealed that they had been internally considering termination for a long time, if so then why were the urging us at the same time to pre-pay? What can we do and how much compensation can we get from this disaster. 1.5 million dollars worth of inventory just got tied up for two entire months because of them.
Submitted: 8 months ago.Category: Business Law
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9/21/2017
Business Lawyer: Law Educator, Esq., Attorney replied 8 months ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 124,423
Experience: All corporate law, including non-profits and charitable fraternal organizations.
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Business Lawyer: Law Educator, Esq., Attorney replied 8 months ago

You can sue for breach of contract as well as unfair and deceptive practices, since they agreed to continue your contract for more money, you paid the money then they breached the contract with you and terminated giving you short time to leave.

Under breach of contract you can sue for exactly what you can prove you lost. So you would need to prove how much you lost as a result of their breach and their mishandling of your property they had to protect.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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Customer reply replied 8 months ago
But their contract states that they can terminate and give 30 days notice at any time. My opinion is that urging pre-payment encouraged us to assume everything was fine and the termination immediately there after kind of shows deceit. Is there any precedence/case ?
Business Lawyer: Law Educator, Esq., Attorney replied 8 months ago

Thank you for your reply.

If their contract stated they could cancel at any time with 30 day notice, which you did not mention, then all they would be liable for is the damage caused by lost property and delay in allowing you to get your property out and move it.

They would still be liable to those damages, even if they could cancel with 30 day notice. It would still be breach of contract.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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Customer reply replied 8 months ago
Can I change professional please.
Customer reply replied 8 months ago
I need a bit more of a nuts and bolts, practical answer with strategies on how to push them in negotiation, gain leverage etc.
Customer reply replied 8 months ago
some thing more practical in the sense that: here is how to extract as much money as possible, here is what calculations we could do and what action we could tell them we will take and how it will affect them etc. in order to get them to submit
Business Lawyer: Law Educator, Esq., Attorney replied 8 months ago

You are asking for $1500 worth of legal strategy for $18? We cannot tell you legally any in depth strategies to push them in negotiation and gain leverage. I did not get over 1 million satisfied customers because I do not know what I am doing or because I do not attend to everything customers ask. We ask you to be reasonable in your expectations and we will help answer what we can within the scope of this service.

You were told above though, your value of your claim is the value you can prove you lost as a result of their conduct. We have no way of knowing that, because none of us on this site can review your books to come up with those losses you sustained. You need to compare your income now with same income this time last year and prior months to show what you have lost.

You keep saying they had a right to cancel with 30 day notice, okay, they gave you 30 day notice and you began to remove your property. However, you said it took them 2 months to process your removal AND you lost 10K of products. So the losses over 2 months, plus the 10K of lost products would be part of your damages, as is the 18K cost you for the additional storage.

The leverage you have is their conduct, delaying the move of your product and causing you loss of product. You tried to comply with their demand to move, they interfered with the move and that is where their liability comes in and where you need to argue.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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