A company that aids in barge sales is suing the seller and buyer for allegedly utilizing its services but failing to pay the 6 percent facilitator’s fee.
Attorney Douglas Gassow of Goldstein and Price LC filed the lawsuit on behalf of Heartland Barge Management LLC on June 16 in the U.S. District Court for the Southern District of Illinois against Precon Marine Inc., East Coast Barge and Boat Inc., and Texas International Terminals Ltd.
According to the complaint, Heartland Barge Management assists owners in the sale of barges. The suit states that the plaintiff’s business includes “advertising marine equipment that owners wish to sell, providing information about the equipment to potential buyers, introducing potential sellers and buyers to each other, and helping arrange equipment inspections to facilitate the sale of such equipment.” For its services, Heartland Barge Management charges a 6 percent facilitator’s fee on the sale price.
In October 2019, Precon Marine asked Heartland Barge Management to advertise the sale of a barge called ECB 6007. The defendant indicated that it wished to receive $2 million for the sale. Taking Heartland Barge Management’s fee into account, the barge was listed on the plaintiff’s website for $1,120,000 later that month.
In January 2020, Texas International Terminals contacted Heartland Barge Management and requested more information and documentation regarding ECB 6007. Heartland Barge Management obtained the additional information and provided it to Texas International Terminals. The defendant then indicated that it was interested in inspecting the barge and asked for information regarding the barge’s owner and location. Heartland Barge Management advised Texas International Terminals that the barge was located in Virginia and offered to make arrangements for an inspection, the suit states.
However, the plaintiff alleges that it was eventually informed by Texas International Terminals that it purchased the barge from Precon Marine.
“Under Illinois law, plaintiff’s efforts in advertising the barge, providing additional information and documents to the buyer, disclosing the identities of the seller and buyer to each other, providing the buyer with the barge’s location, and offering to arrange an inspection of it, were the procuring cause of the eventual sale and purchase of the barge,” the suit states.
Heartland Barge Management argues that it is entitled to receive its 6 percent fee of the total sale price. The plaintiff claims it made a demand for the fee from both the seller and the buyer but has not received any payment.
The plaintiff also argues that it is entitled to recover prejudgment interest on the fee because “delay in payment of plaintiff’s fee by defendants is unreasonable and vexatious.”
Heartland Barge seeks a judgment in its favor of $120,000, plus interest, costs, and all other relief the court deems just.
U.S. District Court for the Southern District of Illinois case number 3:20-cv-573