Ohio-based Republic Steel has been ordered to pay nearly $4.6 million to a Pennsylvania trucking company and its affiliate after a federal jury ruled that the steel mill breached its contract by failing to pay the businesses tens of millions of dollars in outstanding invoices for transportation services the carriers provided in 2019 and 2020.
The choice, which got here after a three-day trial that ended July 12, awarded nearly $2.5 million in favor of Beemac Inc., doing business as Beemac Trucking, and nearly $2 million for Deemac Services, each of Ambridge, Pennsylvania. It was upheld by U.S. District Court Judge William S. Stickman IV on Aug. 10.
In accordance with court documents, Republic Steel agreed to Beemac and Deemac’s transportation services for specific lanes offered by the businesses in 2019 and 2020, however the steel manufacturer “refused to make payment of the amounts” for the businesses’ transportation services for the 2 years pursuant to the agreement.
Attorney Daniel McLane, who represented Beemac and Deemac, said the suits had separate dockets but were consolidated for trial within the U.S. District Court for the Western District of Pennsylvania.
“We’re pleased with the jury’s verdict and the eye they paid to this case,” McLane told FreightWaves. “We’re excited to now move forward and proceed to supply the good services we do on this industry.”
Republic declares layoffs after $4.6M verdict
The identical day Stickman entered the ultimate judgment against Republic Steel, a subsidiary of Mexico-based Grupo Simec, the steel mill announced plans to indefinitely stop steel production at a few of its plants in North America, including Canton and Lackawanna, Latest York, shedding nearly 500 staff.
Attorneys for Republic Steel didn’t reply to FreightWaves’ request looking for comment in regards to the verdict or the timing of the layoffs at two of its steel mills.
Bill Teets, communications director for the Ohio Department of Job and Family Services, confirmed the agency did receive a Employee Adjustment and Retraining Notification Act (WARN Act) in regards to the layoffs in Canton, but that the letter didn’t reach the agency until 12 days after the closure, on Aug. 22.
“It appears it was mailed to the unsuitable address and was delayed in getting it to us,” Teets told FreightWaves.
The notification, obtained by FreightWaves, states that Republic Steel “has encountered sudden and unexpected business circumstances that can force the corporate to temporarily idle its steelmaking operations.”
![](https://www.freightwaves.com/wp-content/uploads/2023/08/28/Republic_layoffs_Canton-1-531x600.png)
Beemac Trucking and Deemac, a 3PL, originally filed suit in Beaver County, Pennsylvania, in September 2020, before the grievance was moved to federal court later that very same month.
Prior to going to trial, McLane said the parties underwent a mediation process but that “it was unsuccessful.”
In accordance with its website, Beemac and Deemac were founded by Rick Macklin within the mid-Nineteen Eighties. Beemac, which has greater than 400 truck drivers, later formed an worker stock ownership program in 2019.
Will Republic Steel appeal?
McLane, a partner with Duane Morris, said he hasn’t heard whether Republic Steel plans to file an appeal within the case, but the corporate has 30 days from the judge’s final order, which could be around Sept. 10
“I have no idea their [Republic Steel] intentions. I assume we’ll must wait and see,” McLane said.
Read more articles here:
Former North Carolina trucking company worker accused of embezzling over $900K
Postal service contractor cutting 660 jobs
Truckers take care of fallout after fraudsters steal DOT numbers
Werner driver survives kidnapping, deadly shootout when his rig is stolen
The post Steel mill ordered to pay $4.6M to trucking company, affiliate appeared first on FreightWaves.