Local railcar company files suits to recover debts

Southern Illinois Railcar Company (SIRC), a Madison County railcar-leasing business, filed two separate lawsuits Dec. 23 for breach of contract and unjust enrichment.

The first lawsuit, seeking to recover more than $464,148, was filed against Royal Green Corp., which entered into several railcar lease agreements and management service agreements with SIRC.

According to the complaint, Royal Green, a Temple, Pa.-based company, leased railcars from SIRC and agreed to pay a monthly lease payment of $3,600 for the use of the railcars. In addition, SIRC claims Royal Green was required to pay them an aggregate amount under the management services components of the railcar agreements in the amount of $1,405 per month.

“SIRC provided the railcars to Royal Green under the railcar agreements on an ‘as is’ basis, and Royal Green assumed responsibility for any and all expenses relating to the maintenance and repairs of railcars leased under the railcar agreement. The railcar agreement further provides that if a railcar were out of service for repair work, there would be no abatement of rent,” the complaint states.

SIRC alleges Royal Green has refused to honor its reciprocal obligation to tender lease and other payments as required by the railcar agreement. It owes $172,288.70 for rental and management fees; $182,500 for car repairs and $9,360 for storage and switching fees.

SIRC alleges that Royal Green is in default and breach of contract for its failure to make the required lease and other payments and its failure to abide by its obligations with respect to the maintenance and repair of the railcars.

SIRC claims they have been damaged in the amount of $364,148.70 plus interest.

They also allege that Royal Green’s retention of the $364,148.70 would be unjust enrichment under the circumstances.

SIRC is seeking to collect an amount greater than $100,000 to be determined at trial, and is also seeking court costs and attorney fees, along with other relief the court deems just and proper.

The second lawsuit filed Dec. 23 is against Larsen Farms, of Dubois, Idaho.

SIRC alleges that Larsen Farms has failed and refused to pay $40,902.06 in accordance with its railcar agreement.

“Larsen’s failure to make the required lease and other payments and its failure to abide by its obligations with respect to the maintenance and repair of the railcars is an event of default under the railcar agreement and a material breach of contract,” the complaint states.

SIRC alleges it has been damaged in the amount of $40,902.06 plus interest, and is seeking an amount greater than $100,000 along with costs and attorney fees, plus any further relief the courts deems just and proper.

Gary True and Nathan Collins of Burroughs, Hepler, Broom, MacDonald, Hebrank & True of Edwardsville are representing SIRC in both cases.

Circuit Judge Nicholas Byron has been assigned to the Royal Green case, while Circuit Judge George Moran Jr. has been assigned to the case against Larsen Farms.

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