[April 14, 2015]

Cole Schotz Wins $1.5 Million Judgment for Oncor Electric Delivery

Cole Schotz P.C. secured a $1.5 million judgment for Texas-based Oncor Electric Delivery, LLC (Oncor) in a breach of contract suit against a scrap metals recycling management service provider GLM DFW, Inc. (GLM) after a nearly two-year legal battle.

On March 31, the 116^th District Court of Dallas County, Texas, ruled in favor of Oncor, ordering GLM to pay the full contract amount of $876,000, along with 5 percent annual interest from when the lawsuit was filed. Additionally, Dallas County District Judge Tonya Parker ordered GLM to pay $528,000 in attorney fees and an additional $20,000 sanction due to "groundless and bad faith counterclaims." The additional $20,000 monetary sanction granted by Judge Parker is a considerable award in relation to other prior monetary sanctions awarded in Dallas County.

"This was a hard fought battle against egregious tactics and claims lodged by GLM, which unnecessarily taxed Oncor's resources and prolonged the case," said Cole Shotz Partner James W. Walker, lead counsel representing Oncor. "I'm grateful for the diligent work of the Court and elated that Oncor was awarded all damages and attorneys' fees and costs that it had sought."

On November 8, 2012, Oncor filed suit against GLM after discovering in an audit of the scrap metal recycling service that GLM had consistently overcharged Oncor over a roughly four year period. Ultimately, the amount identified as being owed Oncor as a result of this audit was just over $876,000. Oncor and GLM reached an accommodation to reimburse Oncor for this identified sum, but Oncor had to file suit when GLM refused to abide by its payment obligation. After Oncor won summary judgment on liability and damages for GLM's contractual obligation to pay the agreed upon audit amount, the parties litigated GLM's numerous counterclaims against Oncor, including claims for business disparagement, three counts of tortious interference with contract and prospective relations, breach of a separate contract unrelated to the scrap metal recycling services, conspiracy, fraud and fraudulent inducement. With respect to these counterclaims, summary judgment was also entered in favor of Oncor.

Mr. Walker was assisted by Cole Schotz Associate Justin S. Levy in representing Oncor in the suit.

About Cole Schotz:

Cole Schotz serves clients nationally throughout the United States with offices in New York, New Jersey, Delaware, Maryland and Texas. The firm represents private equity firms and hedge funds, as well as hundreds of closely-held businesses and individuals - many for decades - as well as Fortune 500 companies. Founded in 1928, the firm has grown to over 120 attorneys who work in eleven primary areas of practice: Bankruptcy & Corporate Restructuring; Construction Services; Corporate, Finance & Business Transactions; Employment Law; Environmental Law; Intellectual Property, Litigation; Real Estate; Real Estate Special Opportunities Group; Tax, Trusts & Estates and White Collar Defense & Investigations.

[ Back To TMCnet.com's Homepage ]