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Mold Abandonment?

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allplastics
Posts: 21
Joined: Tue Feb 27, 2018 3:24 pm

Mold Abandonment?

Post by allplastics » Wed May 13, 2020 2:42 pm

We have a mold in our facility that has been inactive for 20 years with no communication from the customer. The customer is now a different Company and wants possession to transfer the mold to someone else. Has anyone claimed mold abandonment to take legal possession of molds sitting in their facility? Or if this happened did you charge a large storage fee due to the time it has been taking up sq ft in the facility? Best practices on this issue would be appreciated.

allplastics
Posts: 21
Joined: Tue Feb 27, 2018 3:24 pm

Re: Mold Abandonment?

Post by allplastics » Wed May 13, 2020 4:16 pm

allplastics wrote:
Wed May 13, 2020 2:42 pm
The situation is far more complex with recollection of prior violation of mold lien laws, however, looking for a simple win instead of trying to go back 20 years to dig up documentation.

Troyonix29
Posts: 51
Joined: Mon Feb 26, 2018 10:09 am

Re: Mold Abandonment?

Post by Troyonix29 » Thu May 14, 2020 8:54 am

From Lindsey Hahn of Metro Plastics Technologies:

Jennifer, for this situation, I would require proof of ownership.

Once I received this I would require a PO for the storage and a charge for preparing the tool for shipment. The storage charge could be in the range of $50.00 / month . 20 years would be $12,000 .

A starting place to negotiate from. Once there was an agreement I would require payment before shipment. This is all dependent on your relationship with the customer and what future business possibilities are there.

LHahn(at)metroplastics.com

HRothenbuecher2018
Posts: 8
Joined: Fri Jun 22, 2018 12:06 pm

Re: Mold Abandonment?

Post by HRothenbuecher2018 » Thu May 14, 2020 11:27 am

If the objective is to just get rid of the tools, a simple solution for this situation (to avoid digging through documents and complying with notice requirements before deeming a tool abandoned) is to require the company to indemnify you and hold you harmless for any claims that may arise from your transferring the tools to them. You also want the new company to provide you a release of any claims arising from the new company's use of the tools. You could document that through a letter agreement. If you want to squeeze some juice from the orange first, before transferring the tools, Lindsey's suggestion below is an option.

-Alan

allplastics
Posts: 21
Joined: Tue Feb 27, 2018 3:24 pm

Re: Mold Abandonment?

Post by allplastics » Thu May 14, 2020 1:35 pm

They want to order parts and get a second quote from someone else to transfer it. We say we own it/ they say they own it. I was looking for an easy win since its been sitting there for 20 years inactive.

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