A significant legal battle has emerged over a warehousing and storage agreement gone awry, leading to a lawsuit that highlights the complexities of contractual obligations in the logistics industry. On December 9, 2024, JK North America, Inc. filed a complaint in the United States District Court for the Northern District of Illinois against Traffic Tech, Inc., alleging breach of contract and other grievances related to a failed warehousing arrangement.
The dispute centers around an agreement initiated in August 2018 between JK North America, a company specializing in light technologies and wellness equipment, and Traffic Tech, Inc., a California-based corporation providing warehousing services. According to the complaint, JK entrusted Traffic Tech with goods valued at approximately $4.3 million for storage in New Jersey. However, complications arose when JK was denied access to its goods due to an unexpected bankruptcy filing by Freight Connections—a third party allegedly involved without JK's consent.
JK North America's complaint outlines several allegations against Traffic Tech. It claims that Traffic Tech breached their contract by improperly assigning its warehousing duties to Freight Connections without prior written consent from JK, as stipulated in their agreement. This unauthorized assignment led to significant delays and financial losses for JK when they were unable to retrieve their goods following Freight Connections' bankruptcy announcement in December 2023.
The plaintiff further accuses Traffic Tech of negligence and conversion, arguing that the defendant knowingly failed to uphold its duty of care by not ensuring timely access or return of the stored goods. Additionally, JK asserts that Traffic Tech violated New Jersey's statutory duty under N.J. Stat § 12A:7-204 by failing to exercise reasonable care with regard to the stored items.
In seeking redress from the court, JK North America is demanding judgment against Traffic Tech on all counts presented in their complaint. They are pursuing damages exceeding $75,000—an amount anticipated to be proven at trial—alongside pre- and post-judgment interest at the legal rate. The plaintiff also seeks reimbursement for attorneys’ fees and costs incurred during this legal process.
Representing JK North America is attorney Timothy L. Binetti from Dinsmore & Shohl LLP based in Chicago. The case is being overseen by an unnamed judge under Case No. 1:24-cv-12649.