Tulsa-based Trinity Chemical LLC has won a breach of contract lawsuit filed against a Nebraska ethanol operator.
In a recent judgment by Tulsa U.S. District Judge John E. Dowdell, the company was awarded $616,626.41 against Cornhusker Energy Lexington, LLC, a firm based in Lexington, Nebraska.
The lawsuit was filed in 2016 following an agreement by Trinity to lease 30 railcars to Cornhusker. Under the contract, Cornhusker was required to pay monthly service charges and be responsible for cleaning and certain repair expenses.
But Trinity went to court claiming the contract was breached May 27, 2016 when Cornhusker sold its assets and relinquished control and abandoned the rail cars to the third party without Trinity’s consent. The third party, Chief Ethanol Fuels Inc. purchased Cornhusker.
In his recent ruling, Judge Dowdell ruled Cornhusker was “plainly in default” because it did not answer the complaint nor did it defend the lawsuit.