PITTSBURGH A part-owner of a scrap metal recycling company is entitled to nearly $162,000 after his business partner thwarted its ability to operate by selling off equipment and closing the companys bank account, a Louisiana court has ruled.
James Patin had sued Leo Ferguson over the demise of Bunkie, La.-based American Recycling LLC and was awarded $161,666 for loss of wages, half of the appraised value of the company and general damages.
Ferguson appealed the verdict, but the trial courts decision has been upheld by Louisianas Third Circuit Court of Appeal.
American Recycling was formed in 2006 with an agreement that the losses and profits would be mutually split once each partner was reimbursed for his initial capital contribution, according to court documents.
Ferguson made the original investment and purchased an Al-jon logger baler for $412,757which the trial court ruled was company propertyand advanced $20,500 in start-up capital.
In 2008, Ferguson decided to abandon the venture and sold the baler to a third party for $360,000, and closed the company bank account and kept the $38,883 that was on deposit.
During the two years the business operated, Ferguson had been reimbursed $159,500 for the baler, according to the court documents.
Ferguson could not be reached for comment.