According to the court filing, the dispute began when Conical Cutting Tools, a Michigan-based manufacturer of steel and carbide cutting tools, discovered that one of its employees, Corey Avery, had been stealing company materials since June 2023. Avery allegedly sold these materials as scrap to Padnos, a recycling business operating in Michigan and Indiana. The transactions took place at the Padnos Burton Recycling Center, with Padnos paying Avery a total of $7,178 for the goods. Conical, however, is seeking $2.4 million in damages from Padnos, citing the Michigan Scrap Metal Regulatory Act and common-law conversion.
Central Mutual challenges duty to cover $2.4 million scrap metal lawsuit
