"20. In late February or early March 2017, UHP arranged for the product to be shipped from the distributor's location in Australia to the U.S. using an international shipping service ("Shipper A"), which was to arrive on March 4, 2017 in New Jersey. UHP was responsible for the shipping the arrangements, bore the risk of loss for the shipment while in transit, and did not insure the shipment. 21. When Schiliro went to pick up the shipment on or about March 4, 2017, he identified that approximately half of the shipment was missing. Beplate and Schiliro's subsequent efforts over the next several weeks to locate the missing product were unsuccessful. 22. On or about April 5, 2017, Schiliro, at Beplate's direction, filed a claim form with Shipper A for the lost shipment. The claim form listed an air waybill date of March 4, 2017 and Schiliro claimed the value of the partial lost shipment was $130,725, explaining, "[c]laim is based on the value we lost by not delivering this product and based on pricing" and that UHP needed "to be compensated at a minimum what we lost." Schiliro included the assertion that "[w]e have lost our largest client because of this loss." In fact, UHP had not lost any clients as a result of the lost shipment, and although UHP intended to resell the product, none of UHP's distributors or others had agreed to purchase it. 23. On May 8, 2017, Shipper A responded to the claim by letter to Schiliro stating that they were "unable to honor" the claim in the amount of $130,725, explaining that because the signed air waybill, which contained the contractual terms between the parties for the shipment, indicated no declared value, the legal limit of Shipper A's liability was $3,463.32. However, Shipper A offered to increase that amount by one third of the freight costs and to settle the claim for a total of $4,973. 24. On May 25, 2017, after the same representative from Shipper A and Schiliro spoke by phone, in order to resolve the claim Shipper A would increase its offer to $10,000 in order to come to an amicable resolution if UHP did not have insurance on the shipment. On August 24, 2017, after a further communication from Schiliro to Shipper A, the representative of Shipper A again repeated that its offer remained at $10,000 to settle UHP's claim and that UHP could otherwise proceed through legal action ifit chose to do so. Ultimately, on March 20, 2018, Schiliro emailed that UHP would accept the $10,000 settlement offer and Shipper A issued a check for that amount to UHP dated March 30, 2018."
