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Microsoft hits DHL with $2m lost Xbox action

Crash 'N' Burn

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Microsoft is suing courier DHL for $2m after more than 21,000 Xboxes were damaged and looted during a train derailment last year.

The company has lodged the action (PDF) claiming breach of contact over the accident, near Duke, Texas, in October 2007, and for DHL allegedly refusing to provide any compensation.

The incident saw 12 containers in DHL's charge, which contained 21,600 Xbox units of two different models and that were destined for Hong Kong, go off the rails.

Microsoft is claiming impact damage, wetting, pilferage and shortage allegedly as a result of the train derailment. Microsoft said the amount of damage was in excess of $2m.

According to Microsoft's filing in the US District Court for the Western District of Washington, DHL: "Negligently breached its duties as common carrier, handler, bailee". Also: "At no time has plaintiff been compensated for its damages, as alleged above, by defendant, despite demands made therefor. Defendant has refused and continues to refuse to pay plaintiff's damages." ®

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