A railcar company is suing a Georgia corporation after it says it was not paid for 20 railcars it leased.
Midwest Railcar Corporation filed a suit May 18 in Madison County Circuit Court against Southeastern Industrial Enterprises.
MRC claims it entered into an agreement with SIE on April 18, 2001, in which it agreed to lease 20, 100-ton Gondola railcars for $300 per car per month.
On Oct. 8, 2004, the two companies entered into an amended lease and agreed to extend the lease from 36 months to 96 months. Under the amended lease, the agreement would end on Nov. 30, 2009, MRC claims.
However, SIE breached its agreement with MRC by failing to pay the monthly rent for the cars, by failing to perform repair and maintenance operations as mandated under the terms of the lease and by failing to provide insurance for the cars, MRC claims.
Because of SIE's breach, MRC says it lost $30,000 in rent, is owed $36,000 for rent due under the remaining terms of the contract, incurred costs of $144,375 for repair and maintenance on 17 of the railcars, incurred additional costs to transport the railcars to MRC and will incur maintenance costs on three railcars that have not been returned yet.
MRC is seeking a judgment of $210,375, plus late charges at 18 percent per annum, additional repair and maintenance costs, back charges, transportation costs, unspecified consequential damages, pre-judgment interest, atttorney's fees, court costs and other relief the court deems just.
Robert L. Jackstadt and Daniel J. Rhoads of Tueth, Keeney, Cooper, Mohan and Jackstadt in Edwardsville will be representing him.
Madison County Circuit Court case number: 09-L-507.
Rail car company sues over unpaid lease
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