As lead counsel for designer and manufacturer of dry bulk processing equipment Superior Industries, Inc. (“Superior”), Maslon has resolved a $10 million breach of contract and breach of warranty suit regarding an allegedly defectively designed sand processing plant and obtained complete insurance coverage for the cost of defense.

Superior, a leading American designer and manufacturer of crushing, screening, washing, and conveying solutions for dry bulk sand and stone, engaged Maslon when it was sued by its customer HCS Investments, LLC (“HCS”), a producer and seller of sand and other related materials for use in construction. HCS brought claims for breach of contract and breach of warranty related to the design of a sand processing plant and sought $10 million in damages.

In a complaint filed in April 2022 in Tennessee state court, HCS alleged that Superior and co-defendant Belt Tech Industrial, Inc., violated a 2020 purchase agreement for the sand processing plant and various warranties related to the same, alleging the plant failed to produce construction grade sand as promised. Defendants successfully removed the lawsuit to the U.S. District Court for the Middle District of Tennessee, and then worked tirelessly in the course of fact discovery to demonstrate the plant was capable of producing the desired grade of sand, including winning a key discovery motion.

Ultimately, the matter resolved before any depositions were taken and with minimal disruption to Superior’s business. In addition, although Superior’s insurer originally denied coverage for the claims, Maslon succeeded in obtaining discovery admissions to challenge that denial and secured full coverage for Superior’s cost of settlement and legal fees.

The case was HCS Investments, LLC v. Belt Tech Industrial, Inc. et al, No. 3:22-CV-00394 (M.D. Tenn). The Maslon team was led by Stephanie Laws and included Katie Maechler, Judah Druck, Bryan Freeman, Nathaniel Ajouri, Abigail Maier, and Renee Rice.