The Galveston Railroad Museum is suing after they sold two rail cars to a company that didn't fully compensate them, according to recent court documents.

The Center for Transportation and Commerce, doing business as Galveston Railroad Museum, filed a lawsuit April 30 in the Galveston Division of the Southern District of Texas against Heritage Rail Leasing LLC and Iowa Pacific Holding LLC, citing breach of contract, fraud and unjust enrichment. 

The museum claims it entered into an agreement to sell two rail cars to defendant Heritage Rail Leasing on June 3, 2012, for $46,000. According to the suit, the agreement states the defendant promised to pay for the rail cars within three days of receiving them.

According to the brief, the defendants requested a deferment until March 31, 2013, on the condition they will pay 5 percent interest. The plaintiffs state Heritage sent two checks for $690 to be applied to the debt and haven't paid anything since, the suit alleges.

The plaintiff is seeking damages in a principal sum in excess of the minimum jurisdictional limit of the court, interest, attorney's fees and court costs.

It is being represented in the case by Houston attorney Kenneth A. Zimmern of Zimmern Law Firm PC.

Galveston Division of the Southern District of Texas Case No. 14-cv-0482

This is a report on a civil lawsuit filed at the Galveston Division Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.

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