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Century Metal claims logistics firm failed to pay for freight

Keywords: Tags  Century Metal Recycling, Dacon Logistics, David Larr, aluminum scrap, Nathan Laliberte

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 scrap—collectively valued at $1,219,357—from 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 "Larr’s 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.

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