Neosho Concrete Products Accuses Fiberglass Composite Manufactures of Alleged “Breach of Contract”
April 11, 2021, District of Missouri – Plaintiff-Debtor Neosho Concrete Products Company (collectively “Neosho”)) sued Defendant Owens Corning Sales, LLC (“Owens Corning”) for “damages and specific performance of a contract.”
The complaint is asserted under Bankruptcy Rule 7001(2) and (9) and seeks declaratory relief as to the ownership or interest in 20,000 tons of Rockwool shot (“RRS”) stockpiled on the premises of Neosho which was allegedly a product of the Owens Corning’s manufacturing processes. The RRS was allegedly hauled from Owens Corning’s manufacturing facility. According to the complaint, a “real and subsisting controversy exists between the parties concerning the ownership of the shot and who is responsible for disposition including removal and returning the premises to a safe and marketable condition.”
Neosho asserts that Owens Corning “continues to own and was allegedly responsible for the RRS stored and stockpiled” by Neosho, “based upon a supply agreement and upon certain admissions made by Owens Corning representatives.” Owens Corning allegedly “claims no ownership interest” in the shot.
The complaint alleges that based upon the conduct and communications between Neosho and Owens Corning, a “supply agreement” was reached between the parties expressly reciting annual quantities of production, cost including delivery, and location. The complaint further claims that “while Neosho performed all promises required on its part” to be performed per the supply agreement, Owens Corning allegedly “breached the agreement by refusing to acknowledge the agreement.” Further, the complaint alleges that as a direct and proximate result of Owens Corning’s breach of the agreement, Neosho “suffered, and continues to suffer substantial damages,” and has “no adequate remedy at law.”
Plaintiff urges the court to enter a declaratory judgment “construing the provisions of the supply agreement, ownership of RRS and, determine specific rights and responsibilities of the owner.” Plaintiff further requests the Court to direct Owens Corning to “immediately remove all shot waste from Neosho’s premises, refrain Owens Corning from breaching its obligations of the supply agreement and seeks actual, incidental, and consequential damages in an amount to be determined at trial.”