Bankrupt Bed Bath & Beyond files $100M+ mega-claim against MSC

Bed Bath & Beyond vs. Shipping Giants: A Legal Battle Over Supply Chain Crisis Damages

Key Highlights:

  • Bed Bath & Beyond’s (BBBY) bankruptcy estate aggressively pursues compensation from major shipping lines for damages during the supply chain crisis.
  • Initial claims include $31.7M against OOCL (Hong Kong) and $7.7M against Yang Ming (Taiwan).
  • The major case involves a $50M+ claim against MSC, the world’s largest ocean carrier, potentially doubling to over $100M due to alleged retaliatory conduct by MSC.
  • BBBY seeks reparations for higher shipping costs from service contract shortfalls, excessive peak season surcharges, and unfair detention/demurrage charges.
  • Unique to the MSC case: claims for lost profits and double reparations, possibly exceeding $100M.
  • BBBY’s estate cites instances of paying substantially more than agreed rates and unjust detention/demurrage charges.
  • The bankruptcy plan stipulates a distribution formula for any court winnings, with a significant portion allocated to lenders and a part to the debtor/successor entity.
Stay tuned for updates as this significant legal confrontation unfolds, potentially reshaping industry practices and compensation norms.

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