Midwest Railcar sues Behr Iron and Steel over breach of contract

By Kelly Holleran | May 15, 2013

A lawsuit filed earlier this month blamed a Rockford corporation for failing to pay nearly $200,000 for the rental of railroad cars.

Midwest Railcar Corporation filed a lawsuit May 7 in Madison County Circuit Court against Behr Iron and Steel.

In its complaint, Midwest claims it entered into a lease agreement on June 14, 2007, with Behr in which Behr agreed to pay monthly rental charges for railroad cars. In the agreement, Behr promised to pay $450 per car per month for 60 consecutive months, according to the complaint.

However, Behr failed to make its fixed rent payments from January through April. It also failed to pay for repair costs and to clean the cars as required under the lease agreement, the suit states.

“As a direct and proximate result of the aforesaid breach of the master lease and schedule 1 by Behr, MRC has sustained damages in the amount of $196,471.92, late charges at 18 percent per annum, and other and further consequential damages recoverable under article 2A of the Illinois Uniform Commercial Code,” the complaint says.

Although Midwest claims it has demanded payment from Behr, it has refused to hand over the requested money.

In addition to the money it claims Behr owes it, Midwest seeks pre-judgment interest, attorney’s fees, costs and other relief the court deems just.

Robert L. Jackstadt of Tueth, Keeney, Cooper, Mohan and Jackstadt in Edwardsville will be representing it.

Madison County Circuit Court case number: 13-L-711.

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