September 15, 2011 1:56:00 PM
Severstal steel company''s dispute with former metal brokerage company is over.
A circuit court judge ruled on Monday that "Severstal may purchase scrap directly from other vendors as long as the requirement of the first 30,000 gross tons per month is purchased from Jefferson Iron as provided in the contract," according to a press release from Severstal.
Severstal entered an agreement with Jefferson Iron and Metal Brokerage Inc. in 2006 for the company to "locate and secure" "no less than 30,000 gross tons of scrap metal per month" for Severstal, according to court documents. Severstal, in turn, would pay Jefferson''s procurement costs, as well as $2 per gross ton of scrap metal.
In April, Severstal officials met with Jefferson officials to inform them their services were no longer needed, as of April 1, since Severstal had developed its own system to work directly with vendors.
Jefferson contended it was owed $12 million in damages if Severstal deals directly with vendors and doesn''t pay Jefferson the $2-per-gross-ton fee.
According to the order issued by 16th Circuit Court Judge Lee Coleman, Severstal is not in breach of its contract with Jefferson.
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