$4 Million verdict in favor of Adrian-based The Service Source, Inc. against DHL Express

September 2010Courtney E. Morgan, Jr. and his co-counsel Keefe Brooks of Brooks, Wilkins, Sharkey & Turco, PLLC obtained a $4 million verdict in favor of Adrian-based The Service Source, Inc., and against DHL Express. In a lawsuit filed in Lenawee County Circuit Court, plaintiffs The Service Source, Inc. and The Service Source Franchise, LLC sought economic damages from defendant DHL Express (USA), Inc. for breach of contract.

Adrian-based Service Source had been in business 15 years as a reseller for shipping services, focusing exclusively on small businesses that needed domestic-only shipping. Service Source had a contract to use Airborne Express Delivery Services exclusively, and when DHL bought Airborne in 2003, DHL continued the rolling five-year contract that Service Source had established with Airborne.

On November 10, 2008, DHL announced it would cease all domestic shipping service on January 30, 2009. Service Source, which was in the process of expanding into a franchise, attempted to find a substitute shipping service to offer its customers, but to no avail, and eventually ceased business functions.

Plaintiffs successfully asserted that defendant had an obligation to fulfill the five-year contract, and contended that there was financial loss that could not be avoided because of it.

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