A federal jury has decided that Republic Steel, an Ohio-based steel mill, broke its contract by not paying millions of dollars in invoices for transportation services the carriers provided in 2019 and 2020. The steel mill must now pay nearly $4.6 million to a trucking company and its affiliate in Pennsylvania.
After a three-day trial that ended on July 12, a judge sided with Beemac Inc., doing business as Beemac Trucking, of Ambridge, Pennsylvania. Beemac Inc. was given over $2.5 million, and Deemac Services, also of Ambridge, was given almost $2 million. On August 10, U.S. District Judge William S. Stickman IV backed it up.
Republic Steel Ordered to Pay $4.6M to Trucking Companies for Breach of Contract
Documents from court show that Republic Steel hired Beemac and Deemac to provide transportation services for certain routes in 2019 and 2020, but it “refused to pay the amounts” for those two years.
Daniel McLane, the lawyer for Beemac and Deemac, said that their cases were being tried together in the United States District Court for the Western District of Pennsylvania, even though they were on different dockets.
McLane told a logistics news site that they are pleased with the jury’s verdict and the attention they paid to this case. We are excited to move forward and continue providing the great services we offer in this industry.
Republic announces layoffs after $4.6M verdict
Republic Steel, which is owned by Grupo Simec in Mexico, said on the same day that Stickman filed the final ruling against it that it would stop making steel at some of its North American sites, including Canton and Lackawanna, New York, for good and lay off almost 500 people.
Logistics news site asked Republic Steel’s lawyers about the ruling and when workers would be laid off at two of its steel plants. The lawyers did not respond to Logistics’ request.
Bill Teets, the department’s communications director, stated on August 22 that the Ohio Department of Job and Family Services got a letter about the cuts in Canton. The letter was sent under the Worker Adjustment and Retraining Notification Act (WARN Act). But the letter didn’t get to the department until 12 days after it had already shut down.
Republic Steel to Temporarily Idle Steelmaking Operations; Beemac and Deemac Lawsuit Update
Teets told the logistics news sites that it seems the package was sent to the incorrect address and experienced a delay in reaching us.
According to logistics news sites, it has been reported that Republic Steel will temporarily idle its steelmaking operations due to sudden and unforeseen business circumstances.
Affected positions at Republic Steel’s facility in Canton, Ohio, according to the company’s WARN Act notice. (Screenshot)
In September 2020, Beemac Trucking and Deemac, a 3PL, brought a case in Beaver County, Pennsylvania, but later moved it to federal court.
McLane said that the parties tried to work out their differences through mediation before the hearing, but that it “failed.”
Both the Beemac and the Deemac websites say that Rick Macklin made it in the mid-1980s. In 2019, Beemac, which has more than 400 truck drivers working for it, set up an ESOP.
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