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Golub Corp. sues former cardboard recycling contractor

Golub Corp. sues former cardboard recycling contractor

$2.35M lawsuit is reboot of same claim made in 2016, dropped in 2017
Golub Corp. sues former cardboard recycling contractor
The Price Chopper on Eastern Avenue in Schenectady is pictured.
Photographer: Gazette file photo

ALBANY — The parent corporation of Price Chopper and Market 32 supermarkets has taken a former recycling contractor to court, again.

Schenectady-based Golub Corp. originally sued KLT Industries of Marlborough, Massachusetts, in March 2016, seeking $2.35 million on the grounds that the cardboard recycler had violated the terms of its contract and not paid what was owed.

In June 2017, Golub and KLT voluntarily agreed to drop the court case, and the judge hearing the matter dismissed it.

But on Sept. 18, 2018, Golub sued KLT in federal court on the same grounds seeking the same $2,345,483.65, plus interest and expenses.

“The parties attempted to resolve the dispute outside of court, but those efforts proved unsuccessful,” said Golub Corp. spokeswoman Mona Golub. “So, the case was re-filed.”

The allegations are straightforward: Golub says it delivered used cardboard to KLT and KLT did not pay for it.

The Golub Corporation’s attorney, in the legal filings, said the two companies entered into their agreement in August 2013. KLT began making only partial payments starting in September 2014 on the monthly invoices Golub submitted, then stopped paying altogether in February 2015, the legal papers say.

Scrap cardboard, known as old corrugated containers in the industry, has declined in value as a commodity to be recycled.

KLT has not responded in court to the new Golub lawsuit. But in its 2016 response to the original lawsuit, the declining value of cardboard was part of its defense. It also said Golub Corp. had deceived it:

“Plaintiff is barred from recovering as it comes to this Court with unclean hands. Defendant intended to exercise the force majeure/act of God clause to be released from the obligations under the Agreement but Plaintiff induced Defendant not to exercise said clause based on promises and representations that it would accommodate the Defendant in light of mill closings and the drop in the market price of old corrugated containers and would award a subsequent contract to the Defendant, which Plaintiff failed to honor.”

It also said Golub Corp. “failed to mitigate its damages.”

Mona Golub in 2016 told The Gazette that the company had changed its procedures and stopped using a contractor to handle the many empty boxes its 130-plus stores generate. Instead, Golub Corp. had begun shipping its cardboard directly to recycling mills.

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