Japan Post is suing Yamato Transport for ¥12 billion ($76 million) in damages due to the latter's backing out of a collaboration between them.
The two companies last year announced a tie-up in which Yamato was to gradually outsource its small thin parcel delivery operation to Japan Post. The aim was for this switch to be completed by February 2025.
But Yamato has asked to back out of the deal.
Japan Post filed the lawsuit at the Tokyo District Court on Monday after concluding that no further progress could be expected from its discussions of the matter with Yamato.
According to Japan Post, Yamato in October said it would discontinue its consignment of small thin parcels to the former from January.
The plaintiff said that Yamato is preparing to do so without its agreement, and that the move would result in the mail and parcel delivery arm of its parent, Japan Post Holdings, incurring losses.
Japan Post wants the court to confirm Yamato's obligation to outsource the delivery of the parcels to it according to their agreement. It is also requesting compensation for expected profits from the arrangement and costs to prepare for the service.
Yamato has declined to comment on the suit, saying it has yet to be served the complaint.
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