LB Steel seeks return of $3.36 million in deposited funds from Walsh, court clerk

By Mark Reccek

Bethlehem, Pa., Dec. 7 – LB Steel LLC sought court approval to compel Walsh Construction Co. and Dorothy Brown, Circuit Court of Cook County, Ill., clerk, to return to the company $3.6 million of funds deposited with the clerk, according to a complaint filed Friday with the U.S. Bankruptcy Court for the Northern District of Illinois.

According to the complaint, in February 2005 LB Steel sued Carlo Steel Corp., Walsh and the City of Chicago, along with others, for failure to pay $6,523,699 to LB Steel for its unpaid contract balance, owner approved extras and other changed and extra work the company performed.

The company also sued for quantum meruit and unjust enrichment and sought adjudication of the company’s $1,554,654 mechanic’s lien on the public funds associated with the construction project, which funds consisted of the balance of funds remaining to be paid by the city to Walsh on the contract, the complaint said.

The complaint also indicates that on May 13, 2013, the court granted Calumet Testing, Inc.’s impleader and entered an order directing Calumet to deposit $1,812,696 with the clerk. Also, on June 28, 2013 the City of Chicago and Walsh filed a joint motion to deposit the $1,554,654 in public funds liened by the company with the clerk and on Nov. 12, 2013, the court entered an order directing the City of Chicago to deposit $1,554,654 with the clerk.

“As of the petition date, Walsh had yet to request the release of the deposits from the clerk and the clerk had yet to release them,” the complaint said.

LB Steel is a Harvey, Ill.-based producer of strip plate mills. The company filed bankruptcy on Oct. 18 under Chapter 11 case number 15-35358.

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