A board-game company claimed over $124K in alleged damages against longtime client, Easyship, Inc., an international shipping and fulfillment provider, despite owing approximately $55,000 in unpaid invoices. The company asserted more than $124,000 in damages arising from allegedly defective packaging, damaged merchandise, and shipping failures.
The dispute was complicated by ambiguities in the parties’ agreement, which the company sought to exploit to shift liability for its alleged losses. The agreement also contained an incorrect reference to its standard terms and the absence of an integration clause further empowering the company’s grounds to challenge liability.
All signs pointed to a fast settlement and loss for our client.
The Strategy
We demanded absolute, granular substantiation for every dollar of their alleged losses—including shipment records, replacement costs, and concrete proof of damages.
Then, we dismantled their case piece by piece:
The Record Audit: We audited their claims directly against our client's internal records.
The Contractual Shield: We aggressively challenged their legal basis for shifting liability in the face of clear contractual disclaimers.
The Financial Reality Check: We exposed deep deficiencies in the customer’s accounting and shattered their justification for a set-off against their current balance.
With the alleged damages still inadequately substantiated, we presented a straightforward choice: resolve the outstanding balance or litigate.
The Result
The customer initially offered $35,000, later increasing its offer to $45,000. We maintained our position.
The customer ultimately agreed to pay $50,000 in a lump-sum settlement, resolving the dispute without litigation.
The Takeaway
A damages claim is only as strong as the evidence supporting it. Companies often settle for nuisance amounts given the potential exposure that lurks which is not unreasonable. The danger of a nuisance-settlement policy is that it sets precedent and invites challenges from from adversaries who view the company as an easy target. Easyship is in the shipping business. So we sent them packing.
