NEW YORK Century Metal Recycling Pvt. Ltd. is suing Dacon Logistics LLC for allegedly failing to pay freight charges for shipments of aluminum scrap.
The India-based recycler, which has a facility in Middletown, Conn., has accused Warren, N.J.-based Dacon and chief executive officer David H. Larr of breach of contract, according to documents filed in U.S. District Court in Connecticut.
According to the lawsuit, Century Metal paid the logistics firm $60,500 to arrange the shipment of 30 containers of aluminum scrapcollectively valued at $1,219,357from the United States to India. Century Metal said that under the terms of the contract, signed in July and August 2012, Dacon was required to pay all freight charges and ensure delivery.
When Century Metal attempted to retrieve the containers in India from Germany-based Hapag-Lloyd AG and Japan-based Mitsui OSK Lines Ltd., the carriers contracted by Dacon, both carriers refused "to release the containers as Dacon had failed to make payment of ocean freight," according to the lawsuit, and Dacon failed to resolve the matter.
The lawsuit alleges that Larr engaged in a "pattern of willful and deceitful misinformation regarding payment to Hapag-Lloyd and Mitsui, and subsequent release to Century Metal." The lawsuit also alleges that "Larrs representations were known to be false at the time they were made, and made precisely to induce Century from talking legal action."
Neither company could be reached for comment.