San Diego-based Pacific Coast Steel (now known as Gerdau Reinforcing Steel), is one of the largest steel reinforcing contractors in the United States. In 2008, Pacific Coast Steel purchased substantially all of the assets of Las Vegas, Nevada-based Century Steel, Inc. and an assumption of certain liabilities through an asset purchase agreement. The owners of Century Steel, Inc., including The Tamra Mae L. Hunt Irrevocable Trust, guaranteed Century Steel, Inc.’s performance and obligations under the asset purchase agreement. After the closing of the asset purchase agreement, Pacific Coast Steel determined that the construction projects that it had acquired from Century Steel, Inc. under the asset purchase agreement, including many jobs on the Las Vegas strip, were not as profitable as Century Steel, Inc. had projected. In late 2009, Snell & Wilmer filed a breach of contract and guaranty lawsuit against Century Steel, Inc. and the guarantors. Century Steel, Inc. and the guarantors brought counterclaims, including a claim for breach of the asset purchase agreement.
The recent trial involved the claims and counterclaims between Pacific Coast Steel and The Tamra Mae L. Hunt Irrevocable Trust. After a three-week trial, the jury returned a verdict in favor of Pacific Coast Steel in the amount of $41.6 million. The jury also rejected a counterclaim asserted against Pacific Coast Steel by The Tamra Mae L. Hunt Irrevocable Trust.
About Snell & Wilmer L.L.P.
Founded in 1938, Snell & Wilmer is a full-service business law firm with more than 400 attorneys practicing in nine locations throughout the western United States and in Mexico, including Denver, Colorado; Phoenix and Tucson, Arizona; Los Angeles and Orange County, California; Las Vegas and Reno, Nevada; Salt Lake City, Utah; and Los Cabos, Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. For more information, visit www.swlaw.com.