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Siskin’s breach-of-contract suit moved to federal court

Keywords: Tags  Siskin Steel & Supply, Highland North, Siag-Aerysin, Nordex, Reliance Steel & Aluminum, breach of contract lawsuit, wind towers, corinna petry

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 towers.

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. Siag’s and Nordex’s parent companies came to an agreement in early March under which Siag would replace Nordex’s letter of credit, but two weeks later, Siag’s 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 Siag’s bankruptcy estate," a U.S. District Court filing said, arguing that the district court has jurisdiction over the state court action.

An executive for Siskin’s 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.

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