Buckeye Case Delayed
CHEP Asks for Damages of $159,857
By Chaille Brindley
Date Posted: 4/5/2004
Due to a last-minute filing, the trial on unjust enrichment in the Buckeye Diamond Logistics vs. CHEP USA case, which was set to start in late February, was delayed. CHEP filed a motion asking for nearly $159,857 in washing, repair, lost income and replacement costs associated with Buckeye’s possession and storage of CHEP-marked pallets. The trial has been rescheduled for
The Buckeye lawsuit has been one of the landmark cases in the fight between big blue and recyclers over recycler’s rights when it comes to CHEP-marked pallets that leak into the general exchange pool. In the initial stages of this case, most of the victories have gone to CHEP. The only outstanding issue is how much money a recycler should be compensated for the service of retrieval, storage and returning CHEP-marked pallets. The court was set to hear arguments on this issue until the delay occurred.
Even though CHEP disclosed its damages after the filing deadline, the court allowed the filing to be considered. Since the court accepted CHEP’s last-minute filing, Buckeye supported a delay because it needs more time to gather evidence to counter CHEP’s claims.
CHEP claimed it incurred $27,966 ($1.75 per pallet) in costs related to washing CHEP-marked pallets that had been stored outside by Buckeye. CHEP also claimed that Buckeye owes for damage to its pallets which amounted to more than $18,000 in replacement and repair costs. Whether or not Buckeye is liable for these costs will be determined at trial.
Attempting to shield as much sensitive information as possible, CHEP has filed motions to exclude many pieces of evidence. It appears CHEP is trying to throw out as much as possible.
Buckeye Diamond Logistics vs. CHEP
CHEP’s Damage Claims
15,981 pallets washed @ $1.75 $27,966
6,996 parts replaced @ $0.673 $4,708
2301 pallets repaired @ $ 1.07 $2,461
259 pallets replaced @ $ 18.54 $4,801
PLUS: Depreciation in value
Total pallets Dep. Monthly Average Mo. Held Total
27,395 $0.1233 10.1 $33,995.58
PLUS: Cost of Capital
# of Replacement Pallets Replacement Cost of Capital @ 9%
27,395 $538,275.60 $48,444.78
PLUS: Service fees paid to Buckeye by CHEP customers for CHEP pallets returned to those customers. Total $37,482
Total Claimed Damages $159,857
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