Punta Arenas, Chile-based fishing firm Chilean Sea Bass has sued Kendell Seafood Imports over USD 2.54 million (EUR 2.14 million) in what it claims are overdue payments.
According to the case, filed in the U.S. District Court for the District of Rhode Island, CSB, which is owned by Gestion Internacional Marcario SL, has filed claims against Kendell for breach of contract, breach of covenant, and unjust enrichment, and for the amount owed on the book account.
CSB claims that Kendell had placed an order for the entire catch from CSB's three fishing vessels operating in the Antarctica’s Ross Sea for the 2019-2020 fishing season, as it had done the four years previous. Kendall purchased and received 350 metric tons (MT) of the Chilean sea bass, also known as the Antarctic toothfish, but only paid USD 3.9 million (EUR 3.3 million) of the total USD 6.4 million (EUR 5.5 million) due.
The case states Kendall cited the coronavirus pandemic as the reason for not paying the remainder due, insisting that CSB "share in the burden that Kendell has absorbed in the past year." However, CSB never agreed to that decision and despite the latter's repeated demands, Kendell has refused to pay, according to the court documents.
According to the suit, at the beginning of the COVID-19 pandemic, Kendell informed CSB it would suspend payments for two weeks; Kendall made several partial payments during the following months, but not at the amount established in the purchase agreement, claiming that CSB had to share in the pandemic losses or discount future purchases, according to the complaint. This led to income shortfalls for CSB, which found itself unable to meet its financial obligations to other vendors. That, in turn, resulted in the embargo of one of its three vessels, it said.
"As a result of the embargo of CSB's vessel, CSB was unable to use that vessel for the 2020-21 fishing season and lost the opportunity to catch at least one-third of its expected annual Chilean sea bass catch," the company said in its suit.
Last year, Kendell entered into an unspecified arrangement with Spanish fish supplier Grupo Profand, and it told CSB it was unable to pay the arrearage without funding provided by Profand.
