CHEP Australia said today that it had settled a dispute with a Victorian food wholesaler regarding the use of the company’s distinctive blue pallets.
According to Chep, the company attempted to resolve the matter through commercial negotiations, however when these negotiations failed the pallet manufacturer commenced legal action to protect the rights of its shareholders and customers.
This is the fourth dispute over pallet ownership that the company has successfully resolved over the past 12 months.
Chep succeeded in asserting its rights to immediate possession of pallets in two court cases in New South Wales — the first against a fruit and vegetable retailer and the second against two food wholesalers.
A third case, in Western Australia, was settled out of court.
The company says it’s Terms of Hire state clearly that it remains the owner of its equipment at all times as part of a managed, reusable, returnable packaging solution.
Only the company’s customers and their respective agents are entitled to use its equipment. Neither the comany’s customers, nor any other person, are entitled to buy, sell, modify or otherwise exchange its pallets.
President of Chep Australia, Paul McGlone, welcomed the latest outcome because it reinforced the company’s commitment to maintaining equity for all customers.
“The courts have sent a powerful message that Chep property remains Chep property. Those who seek to gain an advantage by attempting to use our assets, like pallets, without being our customer will be caught out,” he said.
McGlone said Chep will take any and all action necessary to maintain equity of its pallet pool and to protect its customers.
“The unauthorised use of Chep assets erodes the value of our managed, returnable, reusable system, and creates unnecessary control burdens and costs on our legitimate users,” he said.