Refusing custom cardboard compactor costs company $4,700

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A Coquitlam recycling company is entitled to $4,700 after a customer ordered – and then refused installation of a cardboard compactor, according to a recent Civil Resolution Tribunal case.

On October 23, 2020, AtSource Recycling Systems Corp., which has its head office in Coquitlam, signed a deal to install a custom-made compactor for Ecological Park Agriculture Inc.

On Jan. 13, 2021, an AtSource crew consisting of two technicians, one crane and the compactor arrived at Ecological. They were turned away. Six days later, Ecological emailed AtSource and explained they were cancelling the order due to delays.

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“Ecological undisputedly did not advise AtSource in advance that it was not going to accept delivery of the equipment,” wrote tribunal member Kristin Gardner.

By declining to have the compactor installed, Ecological repudiated the contract, Gardner wrote.

Ecological claimed AtSource breached the contract by failing to install the equipment within six weeks of its order. Gardner rejected that version of events.

“There is no evidence the parties had any specific discussions about the equipment’s anticipated installation date before Ecological signed the contract,” Gardner wrote.

The initial proposal stated delivery time would be: “approximately four to six weeks, subject to manufacturer’s production schedule,” according to the judgment.

AtSource’s installation crew arrived at Ecological less than four weeks after the Coquitlam company got the compactor from the manufacturer, Gardner noted.

Ecological also claimed it was: “difficult to get updates from AtSource.” Gardner rejected that argument as well.

AtSource was “very prompt” with its responses, Gardner wrote.

“AtSource always responded to Ecological’s emails within 24 hours, and usually responded within a few minutes.”

Those responses included a shipping update in early December and a confirmation the equipment had arrived on Dec. 21.

On Jan. 5, 2021, AtSource emailed Ecological to let them know they’d be doing a site visit and subsequently informed the company that installation should happen the following week.

Settlement

AtSource claimed $4,404 in costs.

That sum included $1,394 for the cost of the failed installation and another $3,010 spent to reconfigure the compactor for another client.

Gardner awarded AtSource $4,758 for breach of contract as well as interest and CRT fees.

Procedure

AtSource was obligated to prove its claims on a balance of probabilities, meaning their claims were more likely than not.

The hearing was decided through written submissions.

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