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Mold Abandonment?

Posted: Wed May 13, 2020 2:42 pm
by allplastics
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.

Re: Mold Abandonment?

Posted: Wed May 13, 2020 4:16 pm
by allplastics
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.

Re: Mold Abandonment?

Posted: Thu May 14, 2020 8:54 am
by Troyonix29
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

Re: Mold Abandonment?

Posted: Thu May 14, 2020 11:27 am
by HRothenbuecher2018
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

Re: Mold Abandonment?

Posted: Thu May 14, 2020 1:35 pm
by allplastics
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.