I have one company that wants plastic paks only as well. They are in Chicago, and I get the weather, rain and snow they encounter, and no matter how well you seal, the slightest bit of water dissolves these cardboard envelopes rather fast. Even in a downpour, reaching to open the box, quickly sliding down the shoot, they get wet and the first place it seems to go is at the corners and melt. A lot has to do with their carrier and how sloppy he is as well, if you drop at a box, could be a leak, or water getting each time that door is opened. I have witnessed first-hand local deliveries from UPS, even in good weather, and they come in looking like they traveled the world when in reality about 20 miles.
Is it the driver who is sloppy? Just leave the packages in the weather while scanning? Runs over it a few times with the truck (looks like with black marks) or more likely caught in the sorting machines and jams and leavings black skid lines? Who knows, as always, it's on us, and not them.
Common sense states we drop it in excellent condition and is the carrier's fault for what they do with that. One more reason to start using a Fed Ex location and get the receipt, now take a picture to show it was in excellent shape.
I also have the opposite and have cardboard envelope only as the paks are more expensive. Have to scan instructions and read them.
Did you ask for a picture of the envelope?
What does "broken" mean exactly? Opened, torn, caught in their sorting machine, melted, wet?
If half the docs are missing, wouldn't the whole package then be missing or in disarray, torn up? Where was the fed Ex report from the mishap if delivered in that condition?
Were missing docs in sequence, or helter-skelter?
Common sense says the whole thing had to be opened up by a machine or someone in their office who is passing the blame, not just a wet package (which they never said it was), and if sealed with tape, that portion should be intact then. When they delivered it, and in that bad of shape, what did the delivery driver have to say? Just handing them an open mess of half-missing, opened documents and they accepted it no questions asked?
IDK, I don't trust anybody, seems fishy to me to get a new package signed and make money off you. Was it an identical package or did anything change in it?
It seems like it was "maybe" vandalized, or someone in their office goofed up, lost pages, spilled something, and did not own it.
Bottom line, you didn't follow their instructions (loophole), BUT seems excessive to do 2 closings free AND pay $200.00 My theory is your better companies would never do this to you so I would say goodbye to them and call the loss and not resign and certainly not pay anything. They have insurance for this reason.
Sorry this happened, expensive lesson learned.
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