CHICAGO A lawsuit filed
by Siskin Steel & Supply Co. last spring alleging breach of
contract has been transferred to federal District Court in
Pennsylvania from a county court.
The defendants are Highland
North LLC and Siag Aerisyn LLC, which produce wind turbine
Chattanooga, Tenn.-based Siskin
initially attempted to recover $983,046 for materials allegedly
supplied by filing a mechanics lien against property
owned by Highland North. Siag sought to satisfy the lien, but
Nordex USA Inc., on behalf of Highland North, presented a
letter of credit to discharge the lien, which was accepted by
the county court.
Siskin refiled a complaint in
January 2012 to obtain a judgment on its lien claim.
Siags and Nordexs parent companies came to an
agreement in early March under which Siag would replace
Nordexs letter of credit, but two weeks later,
Siags parent company in Germany filed insolvency
proceedings and Nordex asked the court to make Siag solely
responsible for the debt to Siskin.
Siag filed for bankruptcy
protection in April 2012 in U.S. Bankruptcy Court in Tennessee,
naming Siskin as an unsecured creditor.
"The outcome of the state court
action is inextricably related to Siags bankruptcy
estate," a U.S. District Court filing said, arguing that the
district court has jurisdiction over the state court
An executive for Siskins
parent company, Los Angeles-based Reliance Steel & Aluminum
Co., had no comment, and an attorney for Highland North did not
respond to a request for comment.