Microsoft Sues Train Company for Destroyed Xboxes

[Logan Frederick]

Microsoft Sues Train Company for Destroyed Xboxes

A train crash has killed a shipment of 21,600 Xbox 360 systems and Microsoft is suing for $2 million in damages.

In its filing with the U.S. District Court in Seattle, Microsoft claims shipping company DHL is responsible for the "impact damage, wetting, pilfering and shortage" of 21,600 Xbox 360 consoles in a train derailment in Duke, Texas.

The consoles were traveling from a Microsoft center in McAllen, Texas to Long Beach, California. From there, they were to be shipped by boat to Flextronics Industrials in Hong Kong.

Microsoft says DHL "negligently breached its duties as a common carrier, handler, bailee, warehouseman, agent, or in other capabilities," and expects the transportation company to cover the lost system sales.

Neither side has since commented on the lawsuit.

Source: GamePro [http://www.gamepro.com/article/news/207439/microsoft-sues-dhl-after-train-dumps-21-600-xboxes/]



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[ElArabDeMagnifico]

Wow, you can do that?

That's like suing someone who was running a marathon for not finishing the race, when some maniac ran by with a chainsaw and cut off his legs.

 

[Karisse]

This is why shipping insurance exists. Not to mention few would call a train wreck negligence.

 

[fix-the-spade]

Wait, Microsoft are angry that someone else broke 21'000 Xbox 360s?
How many 360s have Microsoft killed with their shoddy design standard? I suppose this depends upon whether the train crew were actually negligent leading up to the crash, or just the victims of some horribly bad luck. You would think M.Soft had insurance wouldn't you.

TBH this is really a conspiracy by Sony to help the PS3 recover ground in the far eastern markets through shortage of supplies by rival, western manufacturers... or something.

 

[Lt. Sera]

Well the story is probably that MS has an insurance on these deliveries and that DHL is refusing to pay up.

 

[Eldritch Warlord]

Um, makes sense. What else is there to say (unless you're some fanboy like fix-the-spade looking to take a jab at MS)?

 

[raemiel]

I agree with the above posters: surely Microsoft would have had insurance for the shipment? Additionally, since they are also suing for lost sales, I would have thought they would have had a separate insurance plan or other type of economic plan should something like this happen.

 

[fix-the-spade]

Um, makes sense. What else is there to say (unless you're some fanboy like fix-the-spade looking to take a jab at MS)?

I take exception to that, I'm not some fan boy looking to have a jab at MS. I'm some fanboy looking to have a jab at Ms and Sony, Nintendo too if the opportunity arises, jabs for all!

 

[Snidenightshade]

well that was unspected... you think the people would be more careful around a shipment and get's wreked thats a lot of money to pay for the damages.

 

[DXL540]

I'm suspicous about the "lost system sales" comment. Take a closer look at the source and destination locations. These boxes were most likely already dead and were heading back to a mfr for refurbishment.

 

[Logan Frederick]

Ah, DHL: the cheapest, fastest way to lose your stuff worldwide.

Seriously, they lost an 18ft long tube, after assuring us it made it on the cargo plane, yet it never made it to the destination.

 

[L.B. Jeffries]

I agree with the above posters: surely Microsoft would have had insurance for the shipment? Additionally, since they are also suing for lost sales, I would have thought they would have had a separate insurance plan or other type of economic plan should something like this happen.

*edit*

Read the post below this one.

Microsoft now has to prove that the train company blatantly neglected one of their duties (checking schedules, maintaining tracks, hiring a drunk staffer) and this directly caused the wreck. If it was an act of God, fate, randomness and not particularly anyone's fault...then they won't be held responsible and the insurance company has a good cry.

 

[Jhereg42]

I do freight claims for a major international electronics company, so I can shed some light on the subject.

Companies like mine and Microsoft are self insured. They do this because they ship so many high end electronic items than insurance premiums would be through the roof. Usually, this means that they put together a fund that is a fraction of their net income, and that pool of funds is managed by a insurance company that they hire to do so. They treat this money just like it is their own, including everything from law suits to subrogation. Because they were self insured, DHL likely only owes Microsoft something to the tune of $5 per pound. A 360's value far outstrips it's weight. DHL likely offered a settlement based upon their base liability. It would have been a barely a drop in the bucket. End result, the only way Microsoft avoids takinga hit in the 1.8 million dollar range is to prove that the carrier was neglegent in a law suite. I've done this before through subrogation in the case of catastrophic damage to a shipment of ATM machines from overseas.

Hope that helps clear up the confusion.

 

[Lvl 64 Klutz]

Wait... pilfering? Are there people out there looting train wrecks? Then again, it was a shipment of 360's...

 

[clubhaus]

How hard is it to move the 360's to a warehouse to keep them from being pilfered? I can see the negligence angle. I have sympathy if it was a true train wreck, but DHL should take more responsibility. Shipping is their business.

P.S. don't get me started on the quality of workmanship at M.S., I have two friends who have left their broken 360's for greener pastures elsewhere due to touching their 360's with their left hand instead of their right.

 

[Sylocat]

Well the story is probably that MS has an insurance on these deliveries and that DHL is refusing to pay up.

I learned a long time ago to never assume that, sadly.

 

[Eldritch Warlord]

Um, makes sense. What else is there to say (unless you're some fanboy like fix-the-spade looking to take a jab at MS)?

I take exception to that, I'm not some fan boy looking to have a jab at MS. I'm some fanboy looking to have a jab at Ms and Sony, Nintendo too if the opportunity arises, jabs for all!

A fine outlook I suppose, someone has to take those corporate pricks down a peg.

 

[CAB_IV]

Either this article is wrong, Or microsoft is going to loose. DHL IS a shipping company, but it IS NOT a railroad (atleast not in the United States). The only Railroads in that region are Union Pacific, BNSF, and maybe KCS. Either way, I can hardly see how DHL is responsible for the derailment.

they own no track, No locomotives (at least in the US), and the "real" railroad oversees the coupling and movement of the actual trains. DHL probably only ships through them. Unless DHL improperly loaded the xboxes, and this somehow resulted in a derailment, then it would NOT be DHL's fault.

 

[Blind0bserver]

You have to figure that a company as large as Microsoft would already insure all of it's shipments just to be safe. They could be suing DHL just to get more money out of it to help cushion their losses.

 

[Logan Frederick]

I'm suspicous about the "lost system sales" comment. Take a closer look at the source and destination locations. These boxes were most likely already dead and were heading back to a mfr for refurbishment.

I was curious about why they were going back there too. I wasn't thinking technically enough because I thought broken 360s went to their centers in America for quick fixes. It's possible there were deeper chip issues that needed them to be sent back to Flextronics. Still doesn't quite explain where they were going or why, but that's another story.