Virginia-based Synalloy Corp. has been released from any liability regarding a suit involving one of its subsidiaries.
A Texas District Court judge ruled against Palmer of Texas Tanks Inc. in a breach of warranty suit brought against Palmer and Synalloy by an unnamed customer. Palmer was ordered to pay $8.6 million in damages, pre- and post-judgment interest and $1.04 million in attorney’s fees.
Synalloy Corp. purchased Palmer of Texas Tanks in 2012 and the products involved in the lawsuit were manufactured and sold prior to the purchase, according to Synalloy’s filing with the Securities and Exchange Commission.
“Palmer is currently analyzing its post-judgment options, including, but not limited to, a motion for the court to reconsider the judgment and other appeal rights,” the filing said.
According to the filing, former shareholders of Palmer — those prior to the August 2012 purchase by Synalloy — have paid all costs incurred by Synalloy and Palmer related to the lawsuit and are contractually bound by the purchase agreement “to hold harmless and indemnify Synalloy and Palmer from any and all costs and damages” which includes the judgment and attorney fees related to the Texas case.
Synalloy Corp. is headquartered in Richmond, Va. and has a corporate and shared services office in Spartanburg. Palmer of Texas is based in Andrews, Texas.