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Contracts
Breach of Contract
Fraud and Misrepresentation

Hotan Corporation v. Prater

Published: Apr. 19, 2008 | Result Date: Dec. 17, 2007 | Filing Date: Jan. 1, 1900 |

Case number: 06CV06994(WHA) Verdict –  Defense

Court

USDC Northern


Attorneys

Plaintiff

Christopher Ashworth

Erin M. Adrian


Defendant

Marc I. Hershman


Facts

On Aug. 22, 2005, plaintiff Hotan Corp. consigned a $129,576 trailer-load of CD-ROM discs to defendant BAP Logistics Inc. for transportation from Livermore, CA to Miami, FL. Defendant's bill of lading did not limit carrier liability for shipment. While defendant used carrier Megatrux Inc., the freight was stolen in Miami. Defendant referred plaintiff to Megatrux, but plaintiff demanded that BAP compensate plaintiff for the loss. Defendant denied liability and refused to pay.

The plaintiff sued defendant for fraud and misrepresentation.

The defendant cross-claimed for indemnity against Megatrux and counter-claimed against plaintiff.

Contentions

PLAINTIFF'S CONTENTIONS:
The plaintiff contended defendant knew they would transfer the consignment to another carrier but presented itself as the main freight broker to plaintiff, denying liability for loss.

DEFENDANT'S CONTENTIONS:
The defendant contended it did not misrepresent itself as the main carrier. The defendant argued it held a freight broker license and claimed Megatrux shared responsibility for the loss. Further, plaintiff owed defendant commissions and freight charges on the shipment.

Result

The jury returned a defense verdict.

Other Information

FILING DATE: Nov. 8, 2006.


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