PITTSBURGH A Singapore-based scrap metal trader is suing Los Angeles Scrap Export Inc. for $1.8 million after it allegedly received only a partial order of inferior U.S.-sourced scrap metal.
H&C S Holdings Pte Ltd. is accusing the Alhambra, Calif.-based broker of breach of contract, unjust enrichment and violation of California Business and Professions Code.
H&C ordered 8,000 tonnes of heavy melting scrap and shredded scrap in July 2013 that was to be delivered by mid-October to one of two ports in Taiwan, according to the lawsuit filed in U.S. District Court in Los Angeles.
The company forwarded $2,460,560 in advance of receiving the scrap, but had concerns about the quality of the material after a portion arrived and consumers complained that it was inferior, according to court documents. H&C then informed Los Angeles Scrap Export that it must perform as specified in the contract and meet the deadline for the rest of the shipment or refund the remainder of the purchase price.
The company alleges that the deadline was not met and only 2,805 tonnes were shipped.
Steve Yu, general manager and president of Los Angeles Scrap Export, said the company has not been notified by the court and could not comment on the matter.