Facts

In or about June 2014, plaintiff's assignor, Key International Group Inc. dba Key International Shipping shipped five containers from Long Beach to Casablanca, Morocco, on behalf of and at the request of defendant A to Z Textiles Inc. Once the five containers arrived in Morocco, two of the containers did not pass customs in Morocco. At that point, Key advised A to Z that it had the option of shipping the containers back to the United States at a cost of $44,740 or A to Z could abandon the two containers in Morocco at a cost of $16,100.

Key sent via email to A to Z sample letters depicting both options, re-export the containers or abandon the containers. On or about Oct. 23, 2014, A to Z drafted and executed letters, which were sent to Key on A to Z's letterhead to abandon the containers. In reliance of the Oct. 23, 2014 abandonment letters, Key paid the shipper the total sum of $16,100 on A to Z's behalf.

A to Z refused to pay Key the principal sum of $16,350, which included $16,100 paid on A to Z's behalf to abandon the containers and $250 short pays from other invoices. A to Z contended it never agreed to abandon the two containers that did not pass Moroccan customs. On or about July 1, 2015, Key assigned its claims against A to Z to plaintiff Attorney Recovery Systems Inc., a collection agency.

Attorney Recovery Systems filed suit against A to Z. A to Z filed a cross-complaint against Key.

PLAINTIFF'S/CROSS-DEFENDANT'S CONTENTIONS:
Attorney Recovery Systems Inc. and Key International Group Inc. contended that A to Z abandoned both containers in writing and that based on said writings Key relied on it paid the shipper $16,100.

Plaintiff asserted open book account and money paid causes of action.

DEFENDANT'S/CROSS-COMPLAINANT'S CONTENTIONS:
A to Z contended that Key had knowledge of the industry, and therefore, A to Z followed whatever Key told A to Z to do. A to Z also contended that only one of the two containers belonged to A to Z, which A to Z wanted returned and since it was salvaged Key owed A to Z the sum of $17,538, the value of the container.

In its cross-complaint, A to Z alleged intentional and negligent misrepresentation.

Settlement Discussions

A to Z offered Attorney Recovery Systems $2,000 on the morning of trial.

Result

The court found in favor of the plaintiff and awarded it $20,996, which includes $16,100 in principal balance, $2,889 in prejudgment interest, $1,007 in costs, and $1,000 in attorney fees, on the complaint. Plaintiff/Cross-Defendant also obtained a verdict in its favor on the cross-complaint.

Other Information

FILING DATE: Nov. 30, 2015.