Coffee Wholesaler Takes Logistics Company to Court Over Missing Shipment
A staggering $84,500 worth of coffee has gone missing, and a publicly traded coffee wholesaler is pointing fingers at a Texas-based logistics company. Coffee Holding Co., a leading wholesale green coffee roaster and trading company, has filed a lawsuit against Ryaan Logistics Group, alleging breach of contract and negligence.
The Disappearance of the Coffee Load
The saga began when Ryaan Logistics brokered the load to Florida-based AFC Trucking. However, an investigation later revealed that AFC Trucking’s identity and DOT number had been stolen, and its information had been altered online. On February 16, 2024, a driver claiming to be from AFC Trucking arrived at Coffee Holding’s La Junta, Colorado facility to pick up the shipment. The driver showed Coffee Holding’s logistics staff the load number provided by Ryaan Logistics, but the coffee never reached its destination.
A Trail of Deception
The lawsuit alleges that Ryaan Logistics failed to deliver the load, and instead, notified Coffee Holding that the driver had missed his delivery appointment. It wasn’t until later that Ryaan Logistics discovered the true identity of the driver, who had an extensive criminal record. Despite tracking the load to two warehouses in California, it was never recovered.
A Failure of Due Diligence
Coffee Holding claims that Ryaan Logistics breached its contract by failing to vet the carrier properly. The company alleges that Ryaan Logistics had a duty to ensure the driver who picked up the coffee load was legitimate. Instead, the brokerage allowed a fraudulent driver to take possession of the valuable shipment.
The Legal Battle Ahead
The lawsuit has been referred to U.S. Magistrate Judge Joseph A. Marutollo, with an initial conference scheduled for March 14. Coffee Holding is seeking compensation for the missing shipment, which is valued at over $84,000. The outcome of this case will have significant implications for the logistics industry, highlighting the importance of proper vetting and due diligence in preventing fraudulent activities.
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