Alleged negligence leading to stolen transit tickets and passes is at the core of a January 6 BC Supreme Court civil claim filed by South Coast British Columbia Transportation Authority (TransLink).
TransLink is suing Brampton, Ontario-based DATA Group Limited Partnership (DATA Group), doing business as the DATA Group of Companies, and Vancouver-based Urban Impact Recycling Ltd., doing business as Urban Shredding Systems, for alleged negligence and breach of obligations surrounding a shredding contract.
The claim also names as defendants Data Group partners DATA Business Forms Ltd. and 2113994 Ontario Inc.
The court document claims that in October 2009, DATA Group signed a contract to provide receiving and storage services for TransLink products, including Faresaver tickets, Taxi Savers and day passes.
The suit alleges that in June 2010, TransLink asked DATA Group to destroy received-and-stored product and that DATA Group suggested subcontracting the service to Urban Impact. The suit alleges that DATA claimed:
•Urban Impact had the skills, expertise and experience needed to securely store and shred the TransLink product;
•DATA Group was comfortable with Urban Impact’s security processes;
•the TransLink product would be shredded within 24 to 36 hours of its arrival at the Urban Impact premises; and
•once the product was shredded, Urban Impact would issue a letter stating that the process was complete and secure.
The court document claims that on June 30, 2010, DATA Group advised TransLink that 29 skids of product had been shipped to Urban Impact for shredding. It claims that the plaintiff was subsequently billed for the shredding of all its product and paid its bill.
“Unknown to the plaintiff,” the claim alleges, “on or about June 30, 2010, and/or subsequent to June 30, 2010, a quantity of the TransLink product was taken from the Urban Impact premises due to the negligence and breach of contractual and fiduciary duties of the defendants.”
The claim further states that TransLink discovered that, since June 30, 2010, unshredded TransLink product was being sold to the public and was being used by TransLink passengers, causing TransLink to lose revenue.
TransLink is seeking damages for negligence, misrepresentation and breach of contract; and indemnification pursuant to written and implied contracts.
In October 2011, Transit Police laid theft and fraud charges against two former Urban Impact employees in connection with an investigation into transit tickets allegedly stolen from Urban Impact in June 2010. The estimated retail value of the stolen tickets was $153,000.
TransLink spokesman Ken Hardie said a more recent estimate of the loss was closer to $200,000, which the organization is seeking as well as damages for loss of reputation and investigation costs. Hardie added that the company will cease shredding in a year’s time when it adopts an electronic fare-payment system known as the Compass Card.
Reached for comment, Urban Impact president Nicole Stefenelli acknowledged that the civil suit had been filed and told Business in Vancouver that her company has co-operated with the investigation.
“The matter is before the courts, and we’ve actively co-operated with the investigation to try to bring this to fruition,” she said. “It’s a very hard thing for a company to go through.” •
