Real Estate Firm Sues US Steel For Refusing Bids Past List Price

U.S. Steel, a struggling steel producer company based in Pittsburgh is getting sued by the real estate company it hired to sell a company-owned condominium after refusing to accept two all-cash offers for the property in the amount higher than the listing price, Pittsburgh Post-Gazzette reports.

On October 16, Berkshire Hathaway HomeServices filed a lawsuit in Allegheny County Common Pleas Court and seeking the $31,800 commission the real estate firm would have earned if the steel company agreed to accept the highest bid of $636,000 for the property.

The lawsuit stated that U.S. Steel wanted $435,000 for the property when it was put on the market in April.

The top bid of $636,000 was made on or about the 23^rd of May and another bid higher than the asking price was made about June 1 in the amount of $500,000, the lawsuit stated. But U.S. Steel didn't accept either of the offers.

U.S. Steel has not made any comment regarding the lawsuit or answered questions regarding what the three-bedroom, three-bath condominium is being used for.

"The company is in the process of evaluating the sale of a number of non-core legacy assets, including the condo," says the company in an email.

Berkshire Hathaway's spokesperson also declined to make a statement, and James Sommers, the Realtor's attorney, has not answered calls to make a comment.

U.S. Steel's president and CEO Mario Longhi has initiated cost cutting Carnegie Way initiative and benefits have been overwhelmed by a severe slump in the steel industry. Because of the availability of cheap imported steel, prices has plummeted and further compounded by the sluggish energy business that had been buying industry products.

Just in the 3^rd quarter, U.S. Steel suffered $173 million worth of loss which brings the total loss for the first 9 months of the year to $509 million.

The condos used to be with the banking family Mellon until U.S. Steel purchased it for an undisclosed amount in 1986.