And The Defense Wins 

David V. Wilson II

David V. Wilson II of Hays, McConn, Rice & Pickering, P.C. in Houston was successful recently in defending claims of breach of contract, fraud and negligent misrepresentation made by a scrap metal supplier against a potential customer.  On December 15, 2010, Mr. Wilson’s client SDB Trade International, Ltd. and the E&E Group LLC, d/b/a E&E Steel Trading conducted an arbitration, which was ordered by the U.S. District Court for the Southern District of Texas.  It had taken SDB Trade International, Ltd. three separate federal lawsuits in both Texas and California to compel this arbitration. 

The E&E Group LLC contended that the SDB Trade breached an agreement to purchase scrap metal by failing to secure a letter of credit, as had been agreed by the parties.  In defending that claim, Mr. Wilson argued on behalf of SDB Trade that E&E Group had, in fact, made misleading statements to SBD Trade to induce it to advance over $70,000 to the E&E Group for the scrap metal and never received a single item in return.  Throughout three years of litigation, the E&E Group had refused to refund the deposit.  The arbitrator denied the E&E Group’s claims in their entirety, ordered a refund of the $73,750.00 deposit, and awarded attorneys’ fees to SDB Trade International, Ltd.

U.S. District Court Judge Hittner entered a final judgment on the award in SDB Trade’s favor on January 7, 2011, and denied the E&E Group’s motion for new trial on February 8, 2011. 

Mr. Wilson is a DRI member and serves as vice chair of the DRI Construction Law Committee.