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We had ordered and paid our order for 1000kg red spiny lobster with a seafood company, LLC, a California Limited Liability Company on January 4th 2013. The agreement is that they will be able to ship the lobster to us in 3-5 days. Now over one month has passed. They still not willing to ship us the lobster nor to refund us the money. I am worry that they will never ship us lobster nor refund the money back to us. Also due to the prolonged delayed shipment, We lost out clients and we paid about $40,000 penalty for non shipment with our buyer plus their lost on travelling and bookings for the arrival of the lobster which didnt happen. I need help to gain my money back. Thanks!
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Under California law and the Uniform Commercial Code, the seller of the goods is liable for your cost of "cover," which is the difference between the original contract price and the cost incurred to obtain the goods from another supplier. If you did not procure the goods from another supplier but instead paid a penalty to the end buyer for breach of your contract of sale, you should be entitled to recover the penalty from the original seller. Whether or not the original seller has any assets to collect from is a whole other issue. You should seek counsel in the jurisdiction where your complaint would be filed.
DISCLAIMER: Please note that this answer does not create an attorney-client relationship, does not constitute legal advice and should not be relied upon, since each jurisdiction has different laws, each situation is fact specific, and it is impossible to evaluate a legal issue without a comprehensive consultation and review of all the facts and documents at issue.
Answered on Feb 11th, 2013 at 3:28 PM