The duty-free business Mikado Enterprises Ltd. is suing its cigarette supplier, King Day Import And Export Group Ltd., for $100,000 and general damages because it alleges that King Day sold it mouldy cigarettes.
Mikado sells duty-free products to vessels leaving B.C. and to bonded warehouses. It alleges in its February 27 notice of civil claim that on or around January 17, 2012, it purchased 100 cases of cigarettes for $1,000 per case. There are 50 cartons of cigarettes per case.
Mikado alleges that it relied on King Day's assurances that the cigarettes were in a reasonable condition in which to sell.
"The product was not reasonably fit for the purpose but contained faults and defects rendering them unfit, and, in particular, had deteriorated, and was mouldy and unfit for human consumption," Mikado alleges in its notice of civil claim.
"It was an implied condition of the contract that the cigarettes would be durable for a reasonable period of time, having regard to the use to which they would normally be put, namely used for human consumption."
King Day failed to remedy the defects or refund the purchase price or otherwise compensate Mikado for the damages and loss of profit incurred, Mikado alleges.
Mikado alleges that it is not only out the $100,000 spent but also storage costs and loss of profit from the sale of the product.
None of the allegations has been proven in court.
No statement of defence had been filed by press time.
