EDWARDSVILLE – Midwest Railcar Corporation has filed a $6.5 million breach of contract lawsuit against Befesa Zinc, US Inc. and American Zinc Recycling Corp.
Midwest Railcar Corporation filed the lawsuit in the Madison County Circuit Court against Befesa Zinc, US Inc., citing breach of contract.
According to the lawsuit, on April 28, 2004, Midwest Railcar Corporation (MRC) had an agreement to lease railcars to American Zinc Recycling Corp. (AZRC). Under the lease, AZRC allegedly agreed that if any of the railcars were lost, destroyed, or damaged in such a way that it could no longer be operated, that they would pay value of the railcar to MRC.
On March 20, MRC provided AZRC and BZUI with a notice that 48 railcars were damaged and that it would be uneconomical to repair and continue operating the railcars. A payment was allegedly due on April 3.
MRC alleges that since then, the defendants have breached their contract by failing to pay the stipulated value of the railcars, which totals $2,304,000. It also alleges the defendants have failed to return the railcars to MRC despite repeated demands to perform their contractual obligations. MRC adds that it has suffered $81,601.76 in lost rent for the cars as well as $4,492,800 in lost potential rent for renting the railcars to 2040.
The plaintiff is seeking damages in excess of $6.5 million, plus interest, attorneys' fees, court costs and any other relief the court deems proper. They are represented in this case by attorney Robert L. Jackstadt of Tueth, Keeney, Cooper, Mohan & Jackstadt, P.C. in Edwardsville.
Madison County Circuit Court case number 2023LA000529