A legal battle between two major freight companies has taken a significant turn, as a California appellate court upheld a ruling against one company for failing to pay over $500,000 in invoices. The complaint was filed by Manifest Destiny Transport Corporation (MDTC) against South Bay Freight System, LLC (SB Freight) on September 30, 2024, in the Superior Court of Los Angeles County.
The case revolves around a contract dispute where MDTC provided cargo delivery services to SB Freight but was not compensated for these services. According to the court documents, MDTC had been delivering loads for SB Freight since 2010 without any written contract until July 2016. The agreement stipulated that MDTC would deliver goods and be paid accordingly. However, in January 2017, a load valued at $396,492.75 was stolen from MDTC's secured yard. SB Freight refused to pay the outstanding invoices citing this loss as justification.
The trial court found that SB Freight acted with "unclean hands" by withholding payments significantly exceeding the value of the lost cargo and attempting to undermine MDTC's business by soliciting its drivers and employees. The court noted that SB Freight owed MDTC more than $1 million at the time of the theft but only partially settled these debts later on.
Manifest Destiny Transport Corporation sought recovery of unpaid invoices totaling $505,995.03 plus prejudgment interest and attorney fees amounting to $146,160.50. The trial court ruled in favor of MDTC and awarded them the full amount claimed along with additional costs due to SB Freight's misconduct during discovery proceedings.
Representing Manifest Destiny Transport Corporation were attorneys John H. Horwitz from Chen Horwitz & Franklin and Joshua T. Kluewer from Kluewer Law. Kenneth D. Watnick from Anderson, McPharlin & Conners represented South Bay Freight System, LLC. The case was presided over by Judge Barbara M. Scheper under Case ID BC661231.