Redmond (WA) – Microsoft is suing DHL Express for more than $2 million over "losing" 21,600 Xbox 360 game consoles that were destroyed in a train accident near Duke, Texas.  
 
The software maker filed a complaint in the District Court for the Western District of Washington in Seattle, claiming that mailing company DHL Express should responsible for losing valuable cargo that contained 21,600 XBox 360 game consoles. The shipment was picked up at the Microsoft office in McAllen, Texas and was planned to be delivered to distributor Flextronics in Hong Kong. Unfortunately, the entire shipment was destroyed when the train cars derailed on their way to Long Beach, California.

DHL Express said that the two containers with Xbox 360s were destroyed because of the accident, which occurred near Duke, Texas. Microsoft wrote in the filing that the two containers sustained "impact damage, wetting, pilfering and shortage." The company tried to reach a settlement with DHL, but the service allegedly refused to compensate Microsoft for the destroyed goods, which prompted Microsoft to file suit. According to Microsoft, DHL "negligently breached its duties as a common carrier, handler, bailee, warehouseman, agent, or in other capabilities."

The software firm asked the court to award more than $2 million in damages, or about $92 per console affected.

DHL did not comment on the suit.

Insurance?

Oct 13, 2008 13:04     

Now, wouldn't there be some insurance on this? Especially something like this?
Andy report abuse vote down vote up Votes: +4

Odd

Oct 13, 2008 13:14     

You would think they'd have insurance in case their packages were lost or damaged in shipment. Woopsie on that oversight.
Will report abuse vote down vote up Votes: +2

WTF!

Oct 13, 2008 13:22     

WTF!!! $92 per console, well I hope those are broken consoles being sent to Flextronics for repair because they're charging almost 110% more with $199.99 per console at the "low price" , wow $92 per console are we being ripped off...
webterractive report abuse vote down vote up Votes: -7

Insured

Oct 13, 2008 13:26     

I read this same story else ware and apparently the Xbox's were insured, and DHL is refusing too pay hence the suing. I think Microsoft would know that they wouldn't win the lawsuit if they weren't insured in the first place.
Brian report abuse vote down vote up Votes: +2

92 dollars sounds reasonable..

Oct 13, 2008 14:21     

I think the value of 92 dollars sounds reasonable to me - for the physical box alone. It excludes all texes, marketing, R&D etc.. how they can be making any money on that is beyond me (well; there are the games/Live etc)!
William report abuse vote down vote up Votes: +2

wait.. shipping to HK?

Oct 13, 2008 15:15     

pretty sure these are manufactured in HK or China in the first place... why would they be shipping from the US to HK -- returns?
Ian report abuse vote down vote up Votes: +2

China>Texas>China?

Oct 13, 2008 15:23     

Things like this seem very wasteful, and environmentally destructive. Make it in China, ship it to Texas, ship it back to China for a distributor to ship it yet again. That is if these were new consoles.
Theicom report abuse vote down vote up Votes: +5

So...what is the cost per console?

Oct 13, 2008 21:49     

Not that most companies don't seel for double the cost to manufacture.
Someone report abuse vote down vote up Votes: +0

Ok, Let's calm down here

Oct 14, 2008 03:03     

And think....We want our money for the damages, but at least 20 people have died on this horrible reck. Damn it! we have to wait about a month to grieve before we can sue!!! Steve Balms
Sorbitol report abuse vote down vote up Votes: +1

price

Oct 14, 2008 05:39     

webterractive, the price probably reflects their costs, not expected profit or the markup that stores have in order to make profit as well.
Richard report abuse vote down vote up Votes: +0

Typical DHL

Oct 14, 2008 07:16     

It is tragic these items were destroyed train, but DHL is notorious for being terrible human beings. On many occasions (in multiple cities) I have encountered hostile drivers, forged signatures and rampant customer dis-service. Why anyone still uses them is a complete mystery.
Pdogg report abuse vote down vote up Votes: +1

Not DHL's fault

Oct 14, 2008 08:22     

I do not blame DHL for the train accident. To sue them is to imply they were at fault for the train accident. IMO; it is another example of Microsofts greed.
TomLeeM/BigWarpGuy report abuse vote down vote up Votes: -7

It IS DHL's fault

Oct 14, 2008 10:26     

This is in response to TomLeeM/BigWarpGuy: Microsoft paid DHL to deliver, not CSX or whatever train company was actually transporting the product. DHL can in turn sue or go after whoever THEIR carrier was, but the deal was between DHL & Microsoft, enough said.
Rhodenator report abuse vote down vote up Votes: +5

Guess What!

Oct 14, 2008 12:38     

$92 per console. The original cost for the console must be like 50 bucks. Whose fault? can't tell. Probably DHL has to pay for the damages since they charged to take care of the shipment. Good Luck DHL
BalaGyi report abuse vote down vote up Votes: +0

Who was driving the train ?

Oct 14, 2008 15:34     

Sounds riduculous for Microsoft to even sue the shipping co. DHL,.. would a person sue an automobile co. for example General Motors.. if they were in a car accident? Seems like personal error is to blame. DHL sure didn't do something to the train, or tracks to cause a train derailment.
Macro report abuse vote down vote up Votes: -4

Prety man

Oct 15, 2008 02:37     

Oh Im alone let's be friends,
ML report abuse vote down vote up Votes: +0

Trains Still De-rail ?

Oct 16, 2008 13:11     

Damn I thought that we were already technologically advanced to get past train de-railings. We can't come up with something safer so trains don't crash ?
RagingSoap report abuse vote down vote up Votes: +0

RE: Who was driving the train ?

Oct 16, 2008 19:10     

Marco, I can see your point, but it was DHL who decided to use the train system and not Microsoft. Once a shipping company picks up a package for shipment (prividing it is insured for the value of the item), it is the shipping company who is under the agreement to get the items to its destination safely and in a timely manor. If the shipping company looses, breaks or breaks a package once they have picked it up from their customer, then they should pay for the insured items. The reason I know this, I used to work for UPS.

DSLJay report abuse vote down vote up Votes: +0

All packages are autumatically insured up to $100.0...

Oct 20, 2008 10:17     

All packages are autumatically insured up to $100.00 regardless is the shipper insures it or not. This is a D.O.T rule. Microsoft is probably trying to collect the rest of the cost.
james report abuse vote down vote up Votes: +0

DHL is responsible for lose during shipping.

Oct 20, 2008 14:37     

Now the subcontracted to the railroad co. so they collect from railroad and MS collects from DHL.
CrashPad report abuse vote down vote up Votes: +0

a few thoughts

Oct 29, 2008 10:35     

Big companies often negotiate away the right for insurance in return for lower rates, they assume that if when shipping dhl losses 2 out of 100 xboxes, they will eat the cost of the 2, in return for steep discounts on shipping. this time they just had all their eggs in one basket. Secondly,, the standered $100 insurance is for damaged done by DHL, it is standered policy for all shippers not to reimburse for things beyond their control. and train derailment is not something dhl could have forseen. same as if in winter and the FAA closes an airport due to a blizard, the the plane dosent leave. you will not be reimbursed for the late package by any shipper. unless you purchased additional insurance for such occasions. and lastly, there is an XBOX plant in mexico, that is likly where these came from.

NAiirita report abuse vote down vote up Votes: +0