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
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
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
Ferguson could not be reached for comment.