PITTSBURGH A judge has dismissed a lawsuit against Phoenix Group Metals LLC after determining the plaintiff failed to prove it had incurred a loss as a result of the alleged actions, Phoenix Group Metals said in a statement.
Houston automotive scrap buyer TXCAT had alleged that Phoenix-based Phoenix Group Metals and chief executive officer Jay Robie sent e-mails to customers in an effort to harm TXCATs reputation, according to the original lawsuit filed in U.S. District Court in Texas (amm.com, Feb. 8, 2010
). The lawsuit suggested that Robie had contacted recyclers alleging that TXCAT had engaged in a fraudulent scam and marketed a trailerload of low-grade catalytic converters.
TXCAT said the e-mails led to a damaged reputation and lost business, and that its lender withdraw its financial support to construct a smelter as a result. TXCAT had sought $500,000 for damages.
But Federal Magistrate Judge Nancy K. Johnson, who was assigned to give a recommendation on the case, determined that TXCAT failed to prove evidence of loss. Johnson also said the lenders affidavit lacked persuasiveness and was not credible. Judge Gray H. Miller adopted Johnsons recommendations and dismissed the suit, Phoenix said.
Phoenix Group Metals called the decision a resounding victory, according to a May 1 news release.
TXCAT could not be reached for comment.