Company stuck with $135k worth of bricks, suit says

Kelly Holleran Apr. 14, 2010, 6:23am

An Illinois corporation seeks more than $1.2 million for more than $135,000 worth of bricks it specially ordered for a rail company that now refuses to accept the merchandise.

Ossola Industrials filed a lawsuit April 1 in Madison County Circuit Court against Amsted Rail Company doing business as Keystone Railway Equipment Company and Amsted Industries, alleging it is not able to resell the bricks.

Ossola Industrials claims it repeatedly ordered large quantities of brick from its supplier after Amsted representatives promised to buy the product. In the past, Ossola never had any problems with Amsted refusing its bricks. However, recently when Ossola has attempted to deliver the brick to Amsted, the company has refused to accept and pay for the specially ordered merchandise, according to the complaint.

For example, in October 2006, Amsted made an offer to purchase $36,753.04 worth of brick from Ossola. Again in May 2007, Amsted offered to buy $38,880 worth of brick from Ossola. In October 2007, Amsted agreed to purchase $59,377.64 worth of bricks from Ossola. But when Ossola attempted to deliver the bricks to Amsted, it refused to accept or pay for the merchandise, the suit states.

Now, Ossola claims it remains stuck with the bricks Amsted refuses to accept and with the payments for storage of the unwanted materials.

"The Brick is not suitable for sale to others in the ordinary course of Ossola's business," the suit states. "Plaintiff has made a good faith effort to attempt resale of the Bricks, but has been unable to find a buyer for such goods."

In its 20-count suit, Ossola seeks damages in excess of $1.2 million; lost profits; additional costs for finance charges, storage and handling of the goods; pre- and post-judgment interest; costs; attorney's fees; and other relief the court deems just.

Kevin T. Hoerner and Sean K. Cronin of Belleville will be representing Ossola.

Madison County Circuit Court case number: 10-L-157.

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