CSX files suit vs. recyclers over sale of scrap rail cars

Nov 21, 2012 | 03:00 PM | Daniel Fitzgerald

Tags  CSX Transportation, New Era Recycling Solutions, Harmon Scrap Metal, lawsuit, Shawn Snelling, scrap railcars, Daniel Fitzgerald

NEW YORK — CSX Transportation Inc. has filed a lawsuit against New Era Recycling Solutions LLC and Harmon Scrap Metal LLC, alleging that New Era fraudulently obtained 16 scrap rail cars belonging to CSX and sold them to Harmon.

Jacksonville, Fla.-based CSX filed the complaint in U.S. District Court in Tennessee, citing counts of unjust enrichment and conversion.

CSX claims in the lawsuit against Independence, Ky.-based New Era and Cornersville, Tenn.-based Harmon Scrap that it entered an agreement with a company called ‘Scrap Masters’ in October 2011 for the sale of 16 rail cars located at a CSX-owned property in Cornersville. The deal followed a request-for-bid process in which Scrap Masters proffered the highest bid, at $244,160.....




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