Beverage Producer Claims Recycler Sold Rather Than Destroyed Substandard Products

Spike, LLC, a company that makes and distributes energy drinks, has filed a
lawsuit against the company it hired to destroy 18 pallets of products that
Spike determined should be removed from the marketplace as unfit for sale,
claiming that the recycling company failed to destroy the products and, in
fact, sold them “thereby undercutting Spike’s sales.” Spike, LLC v. Nationwide
Recycling, LLC, No. 12CV00111 (Wis. Cir. Ct., Waukesha Cty., filed
January 10, 2012). Seeking compensatory and treble damages, attorney’s fees,
and interest, the plaintiff alleges conspiracy; breach of contract; property loss
through fraudulent misrepresentation; misrepresentation: intentional deceit;
misrepresentation: strict responsibility; misrepresentation: negligence; and
conversion. According to the complaint, Spike paid the company $10,000 to
destroy 13,617 cases of energy drink products, which had a value of about
$900,000.