Trial Magazine

Hardrives Paving and Construction, Inc., was an asphalt paving company owned and operated by James Sabatine. Rogers Group, Inc. (RGI), one of the largest crushed-stone suppliers in the country, approached Hardrives about forming a partnership that would expand the ­parties’ business in the Youngstown, Ohio, area.

Hardrives and RGI later discussed forming a joint venture for a distribution and production facility. After agreeing to the important terms of their proposed venture, Sabatine and two of RGI’s representatives signed a document outlining the agreement.

Sabatine then proceeded with the plan by purchasing equipment, buying a larger plant for more than $1.5 million, and moving his operations to the new facility.

A few months later, RGI backed out of the joint venture. Hardrives, which had bid on multiple jobs with the understanding that it would be able to purchase raw materials at a reduced rate, began losing money. Sabatine was forced to sell the business at about an $8 million loss.

Hardrives’ successor, Cranpark, Inc., sued RGI, alleging promissory estoppel. The trial court granted the defendant’s motion for summary judgment. The Sixth Circuit reversed and remanded for trial. A jury then awarded $15.6 million.

Postverdict, the trial court granted the defendant’s motion to dismiss based on the plaintiff’s purported lack of standing. The Sixth Circuit reinstated the verdict and awarded prejudgment interest. 821 F.3d 723 (6th Cir. 2016).

The parties settled for $24 million, including $8.4 million in prejudgment interest.

Citation: Cranpark, Inc. v. Rogers Grp., Inc., No. 4:04CV1817 (N.D. Ohio Sept. 2016).

Plaintiff counsel: AAJ member Michael B. Pasternak, Beachwood, Ohio; and David Mills and the late Jonathon Yarger, both of Cleveland.