A faith-driven toy startup is suing its shipping company after Advent-themed blocks failed to arrive in time for the Christmas season.
Durham-based Blockheads, which does business as Advent Blocks, markets and sells a set of 27-wooden building blocks – intended to help Christian families celebrate Advent, the period leading up to Christmas.
When the blocks arrived too late for the season, the firm sued its shipper, Flexport. It also named as defendants Flexport Insurance Solutions and its insurance partner, Zurich North America Inc, alleging breach of contract.
San Francisco-based Flexport, through a spokesperson, declined to comment on the case.
According to the lawsuit, Advent Blocks says its product are “literally tied to the calendar,” meaning shipping delays can lead to significant losses. That’s why Advent Blocks purchased an insurance policy from Flexport “to protect against disruptions in Advent Blocks’ supply chain, a risk that was all the more significant in view of the Covid-19 pandemic.” But when shipping delays did hit – Flexport didn’t fulfill its end of the contract, the lawsuit says.
Advent Blocks’ first large-scale commercial launch was planned for the 2021 Advent season, which began on Dec. 1, 2021. The plan was to design the products specifically for 2021 – meaning that the line couldn’t be sold in 2022. If the line didn’t launch as planned, “it would be a total loss for Advent Blocks,” the complaint says. As Advent Blocks’ manufacturing partners are located outside of the United States, the pandemic-related shipping and supply chain holdups were concerning enough to look at insurance options, according to the lawsuit, which details due diligence including multiple conversations between Advent Blocks and Flexport representatives.
Advent Blocks agreed to a shipping quote for products from Asia to Ohio, with a door-to-door estimate of 54 days, set to arrive in October 2021. But instead, shipments arrived on Dec. 1 and Dec. 3, after the seasonal start of Advent. The shipments included a line that retails for $80 a set, revenue intended to fund production for the 2022 season. But when Advent Blocks tried to collect on its policy, it was met with conflicting terms, the lawsuit says. As claims were being processed, Advent Blocks executed a salvage sale of the delayed products, totaling about $40,000, which it describes as a “fraction of the products’ retail value.”
The company updated its claim to reflect that sale – claiming a total loss of $418,000. The claims process dragged on – so much so that the lack of funds threatened Advent Blocks’ ability to meet deadlines for the 2022 season, the lawsuit says.
In March of 2022, the claims were finally denied over an exclusion clause labeled “Loss of Marked Caused by Delay(s).”
Advent Blocks argues there was no such exclusion clause.
After repeated back and forth, Advent Blocks filed the lawsuit through attorney James Lawrence on Jan. 4. In a statement provided by Lawrence, Advent Blocks founder Jack Clayton Greene said he didn't "desire a lawsuit."
"But we remain hopeful that this process will serve the health of our company and our ability to help families engage with God and each other," he said.
Advent Blocks, also known as GoodKind, was founded by Greene to “answer his young daughter’s question about the true meaning of the Christmas season,” according to the lawsuit. The company grew out of Greene’s garage “to reach tens of thousands of families.” According to its website, the firm started in 2019 with hand-painted blocks "the size of softballs" and refined the product over time, eventually expanding the idea to other Christian holidays.