Federal Judge Stays Best Buy’s Complaint Against Its Appliance Recycler

U.S. District Judge Richard Kyle in St. Paul, Minnesota, stayed Best Buy’s complaint against its longtime appliance recycler after a Washington State court ordered the bankrupt recycler into receivership, Kyle’s order said. Under Washington receivership law, “an automatic stay of proceedings” against the recycler, Jaco Environmental, is “therefore applicable,” Kyle’s order said. Jaco, headquartered in Bothell, Washington, breached several agreements with Best Buy by failing to pay the retailer hundreds of thousands of dollars it owed in “rebates” for hauling away and recycling discarded refrigerators and freezers, Best Buy alleged in an August complaint (see 1508180060). The “unprecedented and prolonged drop in scrap prices” figured prominently in Jaco’s inability to pay Best Buy the fees it owed, Jaco President Michael Jacobsen emailed us that month, suggesting Best Buy and Jaco were in settlement negotiations and that a “fair and final resolution" was expected soon (see 1508190041). But the case against Jaco remained active until Kyle issued his stay order, and Seattle-area newspapers reported that Jaco abruptly closed its doors just after Thanksgiving. Jacobsen and other Jaco representatives didn’t comment.