Salvage company accused of failing to pay bills

Two Madison County demolition businesses are suing a salvage company that allegedly paid reduced amounts for scrap metal.

Omega Demolition Corp. and Asset Management Brokers Inc., both of Elgin, filed a lawsuit on April 22 in Madison County Circuit Court against Prairie State Salvage and Recycling Inc., doing business as Alton Materials, of Godfrey, alleging nonpayment in a matter originating in November 2014.

According to the complaint, the plaintiffs are, collectively, equipment leasing and salvageable materials businesses offering demolition services, and the defendant is a purchaser of scrap metals. The suit says Omega, hired by a general contractor for a bridge reconstruction project in Granite City, was authorized to handle and sell any scrap metal from the demolition, and it solicited bids for purchase of the scrap from local outfits in fall 2014.

The suit says that on Nov. 11, 2014, Alton’s president, Miles Lynch, discussed a bid with an Omega representative, Keith Splitgerber, and the parties committed to a contract with a mutually agreed schedule of weekly deliveries and payments.

The plaintiffs allege that from late January through early February 2015, Alton accepted delivery but payed a reduced amount on two occasions. The plaintiffs allege Alton is in arrears and cite breach of contract and unjust enrichment.

Omega Demolition and Asset Management seek damages exceeding $65,287.50, plus attorney fees and costs. They are represented by attorneys Anthony Sciara of Harvey Kruse in Troy, Michigan, and Brian Konzen of Lueders, Robertson & Konzen in Granite City,

Madison County Circuit Court case number 15-L-505