Lumberyard sues over purchase of $1.3 million sawmill system it claims did not work

By John Breslin | Oct 18, 2018

KANSAS CITY – An Exeter lumberyard's suit claiming that a $1.3 million sawmill system it bought was not capable of doing the job the seller claimed it would was recently moved to the U.S. District Court for the Western District of Missouri. 

Hardwood Lumber, which is headquartered in Nebraska but operated the facility in Exeter, originally filed the suit in Barry County Circuit Court after it purchased the sawmill system from Kentucky-based Brewco. The suit alleges breach of warranty as well as negligent and intentional representation over the sale of the machinery, a system that turns rough logs into cut stock lumber for production of pallets.

Hardwood claimed that the sawmill system was not capable of turning the logs into lumber and that Bewco should have known this prior to the sale.

The plaintiff wants Brewco to pay for the cost of the machinery, transportation and installation expenses, as well as lost time, production, increased labor expenses, lost profits and damage to its reputation.

Hardwood alleged in its petition that, apart from the $1.3 million of the sawmill system, the company was charged approximately $383,000 for accessories. The Exeter-based yard claims it also spent $25,000 on freight charges and a further $60,000 on  concrete and electrical work prior to installation.

Hardwood is also accusing Brewco's agents of misrepresentation after they claimed the sawmill system would lead to increased production and yield, and decreased labor costs.

"The representations were false," the company stated in its complaint.

Brewco's representatives claimed production would increase to 133 percent above the system Hardwood was then using, according to the complaint.

The plaintiff stated that it "has been unable to meet its production obligations and has lost customers and its reputation as a reliable producer of cut stock lumber."

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