Gardena NVO seeks $110,000 in fees from Korean garment maker
Gardena-based non-vessel-operating common carrier KEI Logstix has filed a U.S. Federal Maritime Commission complaint against a Korean-based apparel manufacturer seeking nearly $110,000 in unpaid shipping costs.
The complaint claims that Greenwest Activewear, which maintains American offices in Compton, hired KEI in 2006 to transport fabric to a Greenwest manufacturing facility in Guatemala on an ongoing basis. KEI asserts in the complaint that following the theft of one of the shipment while in transit by an inland carrier in the Latin American country, Greenwest refused to pay freight due on other shipments. KEI in turn refused to release the manufacturer's cargo in its possession. Negotiations led to a compromise where Greenwest would pay the $101,000 in freight due and KEI would release the cargo.
The complaint alleges that KEI accepted checks for the amount from Greenwest and released the cargo. When KEI attempted to cash the checks, however, the firm found that a stop had been placed on the payments.
KEI contends that Greenwest violated the Shipping Act of 1984 by inducing the NVO to relinquish the cargo and lose its possessory maritime lien when it purportedly made payment of freight by postdated checks, knowing that it would stop payment on such checks once KEI released the cargo. KEI also asserts in the complaint that Greenwest 'knowingly and willfully, by means of unjust or unfair device, obtained ocean transportation for property at less than the rates or charges that KEI would otherwise apply.
KEI is now asking for a total of $108,019 in fees and damages.
The complaint has been assigned to the Office of Administrative Law Judges with a final decision set to be issued by the FMC by Oct. 6.