28/04/05 CHEP wins pallet handling charge challenge

A court case in the UK involving the disposition of CHEP pallets was settled in CHEP's favour. Norwich County Court found that CHEP pallets in the possession of a party other than the owner, renter or contract recipient remained the property of CHEP.

The case started in 2002, when CHEP determined the defendants were retaining CHEP UK standard wooden pallets. Albert Loines demanded a handling fee before he would release them to CHEP, which CHEP refused.

In 2003 an Order was granted by Norwich County Court giving CHEP access to the defendants premises, where CHEP collected 141 CHEP pallets.

The court ordered the defendants to ensure that they do not handle pallets belonging to CHEP in the future.

The court granted CHEP transport and drivers access to the joint defendants premises, both current and future, whenever passing during normal working hours to collect any pallets belonging to CHEP.

Finally, the court stipulated that the Defendants pay CHEP's costs, totalling £12,000. This amount, plus interest and enforcement costs totalling £15,006.14, was paid in November 2004.

"This case serves as a clear message to all pallet dealers who do not take CHEP's right to exert its title and ownership authority over its equipment seriously," says Giuseppe Sanna of CHEP Europe, adding that the Asset Protection Group at CHEP Europe will lead the ongoing effort to ensure that the company's customers have all the high-quality pallets they need.

"CHEP wants to work closely with all pallet dealers but reminds them that CHEP equipment cannot legally be bought, modified, exchanged for non-CHEP equipment, sold or otherwise disposed of. Unauthorised appropriation, use or disposal of CHEP equipment is strictly prohibited and will result in prosecution when identified."