ST. LOUIS (CN) - A federal judge granted summary judgment to CSX Transportation in a contract lawsuit, awarding more than $820,000 to the railroad company.
CSX sued Auburn Thirty-Six in 2012.
CSX claims Auburn agreed to buy 88 railcars for scrap. The purchase was made on credit, but Auburn never paid the agreed upon $820,423.64 price tag, according to the lawsuit.
Auburn filed a counterclaim, claiming that CSX intentionally misrepresented the type and amount of recoverable metals in the railcars sold.
CSX filed for summary judgment on its lawsuit and on Auburn's counterclaim.
U.S. District Judge John A. Ross found in favor of CSX on June 3.
"There is no dispute that defendants signed the Agreement and Guaranty, and that the railcars at issue were purchased by defendants with credit," Ross wrote. "Defendants admit receiving the railcars at issue and subsequently selling the dismantled parts to scrap metal purchasers such as steel mills and junkyards. Defendants also admit they have failed to pay for the railcars which form the basis of CSX's complaint."
Ross dismissed Auburn's counterclaim.
"Defendants' counterclaim for fraudulent misrepresentation fails as a matter of law because they cannot establish that CSX misrepresented the amount of recoverable metals contained in the railcars sold," Ross wrote. "Even if defendants could establish such misrepresentations, they cannot establish reliance thereon. The representations were allegedly made by CSX employee Len Whitehead to former Auburn employee John Fisher, regarding railcars involved in a West Virginia derailment. However, it is undisputed that both Whitehead and Fisher denied that Whitehead, or any other CSX employee, made any statements to Fisher or any other person employed by Auburn regarding the amount of recoverable metal contained in any railcars CSX sold to Auburn."