PITTSBURGH Export Global Metals Inc. is suing Memking Recycling Group LLC and Components & More Inc., both of Carrollton, Texas, for alleged breach of contract over the quality of shipments of computer cables to China.
Hillsboro, Ore.-based Export Global Metals purchases, processes and resells ferrous, nonferrous and electronic scrap to customers worldwide. In June and July of 2012, Export Global Metals purchased four lots totaling 270,000 pounds of computer cables with an expected yield of 35 percent copper from Memking. The price for the loads ranged from 87 cents to 90 cents per pound, which was paid to Components & More.
The scrap was exported to China, where Export Global Metals found it did not meet specifications, according to the complaint filed May 2 in U.S. District Court in Oregon.
In November, Memking declined to inspect the loads and offered to refund the amount of the weight and quality discrepancy, which totaled $72,307, according to the lawsuit. Memking has since refused to reimburse Export Global Metals overpayment, according to court documents.
Export Global Metals is suing for breach of contract, breach of warranty of fitness for particular purpose, and unjust enrichment, and has asked the court for the amount it says it overpaid for the shipments plus court costs and any further relief deemed by the court.
Memking and Components & More could not be reached for comment.