Claremore Daily Progress

Business

May 14, 2014

MSC bites back on post judgment attack

CLAREMORE —

Material Service Corporation of Oklahoma has answered a claim by local attorneys to vacate a $28 million judgment against Rogers County.
Mcafee and Taft of Oklahoma City and Elizabeth C. Nichols, legal counsel for MSC,  filed the motion Friday, requesting the judge dismiss the case they say “lacks merit.”
Material Service Corp. filed the action against the county in 2000, claiming the county had improperly annexed 320 acres that prevented the company from mining the land. The lawsuit continued for more than 10 years. 
Local attorneys Jack Gordon Jr. and Thomas H. Williams claim MSC misrepresented the length of a mining lease resulting in the multi-million dollar judgment. 
The judgment, awarded for a 3-1⁄2 year delay of the mining of the Begley Lease near Oologah,  was won by  “actual fraud of concealment from the court instead of the actual term” of the lease, according to Gordon.
The estimate of the damages awarded to the mining company was based on a 50-year lease. Gordon and Williams contend the actual term of the lease was five years with an option to renew.
They assert that court records show the term of the lease was omitted when it was filed with the county clerk.
 “There can be no credible allegation that Material Service withheld information from the county and the court without their knowledge or gained some improper advantage from introducing only two of the lease’s four pages,” writes Henry Hoss attorney for MSC.
“There is more than one basis for fraud that they have not addressed,” Gordon said. “To say the lease could go on for 50 years is pure speculation.”
“The trial evidence indicated that the ‘property contain(ed) 60-70 years worth of limestone,’” MSC documents indicate. “Thus, describing the lease as having a term of 50 years is not the lie the county would have the court view it as.”

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