IN THE DISTRICT COURT OF CANADIAN COUNTY,
STATE OF OKLAHOMA
RIVER CITY STEEL COMPANY,
and
RICOCHET PIPE, LLC
Plaintiff,
v.
LEE DIVERSIFIED SERVICES, LLC,
and
ETHAN LEE
Serve: Ethan Lee
830046 S. 3450 Road
Agra, OK 74824
Defendant.
Case No. CS-2026-043
PETITION
COMES NOW, Plaintiffs River City Steel Company ("RCS") and Ricochet Pipe, LLC ("Ricochet") (collectively "Plaintiffs"), and for its Petition against Defendant Lee Diversified Services, LLC ("Lee Diversified") and Ethan Lee ("Lee"), states as follows:
PARTIES, JURISDICTION AND VENUE
1. RCS is a Missouri corporation, with its registered office located at 6501 S. Spoede Lane, Warren County, Missouri 63380.
2. Ricochet is a Missouri limited liability company, with its registered office located at 6501 S. Spoede Lane, Warren County, Missouri 63380.
3. Lee Diversified is an Oklahoma limited liability company, with its principal place of business at 10936 NW Expressway, Suite A, Yukon, Oklahoma 73099, and can be served with
process through its registered agent, Ethan Lee, at 830046 S. 3450 Road, Agra, Oklahoma 74824.
4. Defendant Ethan Lee is an individual and resident of the State of Oklahoma and may be served at 830046 S. 3450 Road, Agra, Oklahoma 74824.
5. Jurisdiction is proper in Canadian County as Lee Diversified has, at all relevant times, done business in Canadian County, Oklahoma.
6. Venue is proper in Canadian County, Oklahoma, pursuant to 12 O.S. 2021, §§ 142 and 143.
COUNT I – BREACH OF CONTRACT
7. Plaintiffs hereby incorporate by reference as though fully set forth herein each of the allegations contained in paragraphs 1 through 6.
8. On January 16, 2025, RCS and Lee Diversified entered into a Credit Application ("Agreement"), in which RCS would extend credit to Lee Diversified for the purchase of materials from RCS or its sister company, Ricochet. A true and accurate copy of the Agreement is attached hereto as Exhibit A.
9. In exchange for the materials provided by Plaintiffs, Lee Diversified agreed to pay Plaintiffs within thirty (30) days from the date of invoice. See Exhibit A.
10. Ricochet issued thirteen (13) invoices to Lee Diversified pursuant to the Agreement. A true and accurate copy of a statement detailing those invoices is attached hereto as Exhibit B.
11. Lee Diversified has failed to remit payment for the amounts owed under the invoices, in violation of the Agreement.
12. The Agreement constitutes a valid and enforceable contract.
13. Plaintiffs performed all of their obligations under the Agreement by providing
materials to Lee Diversified as required.
14. Lee Diversified owes Plaintiffs $271,602.00 for the materials provided pursuant to the Agreement. See Exhibit B.
15. On December 19, 2025, Plaintiffs notified Lee Diversified of its failure and refusal to pay the amounts due for materials provided under the Agreement. A true and accurate copy of the December 19, 2025, letter is attached hereto as Exhibit C.
16. Despite this notice, Lee Diversified failed and refused to pay Plaintiffs the amounts owed for materials provided under the Agreement.
17. Lee Diversified’s failure and refusal to pay the amounts owed for materials provided under the Agreement constitutes a material breach of the Agreement.
18. Accordingly, as a proximate and actual cause of Lee Diversified’s breach in failing and refusing to pay the amounts owed for materials Ricochet provided under the Agreement, Plaintiffs have suffered damages in the amount of $271,602.00.
19. The Agreement provides that Plaintiff are entitled to a one and one-half percent (1.5%) monthly service charge on the overdue principal balance, as well as all collection costs and reasonable attorneys’ fees related to collecting any past-due amounts. See Exhibit A.
WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in favor of Plaintiffs and against Lee Diversified and award damages of $271,602.00, attorneys’ fees and costs, and grant such other and further relief as the Court deems just and proper.
COUNT II – BREACH OF PERSONAL GUARANTY
20. Plaintiffs hereby incorporate by reference as though fully set forth herein each of the allegations contained in paragraphs 1 through 18.
21. Lee personally executed a Personal Guarantee ("Guaranty"). See Exhibit A.
22. The Guaranty is an absolute and continuing guaranty of Lee's indebtedness under the Agreement.
23. Lee Diversified defaulted on the Agreement.
24. On December 19, 2025, Plaintiffs notified Lee of Lee Diversified’s failure and refusal to pay the amounts due for materials provided under the Agreement and demanded payment thereof. See Exhibit C
25. Despite the presentment of the Guaranty and demand from Defendants, Lee failed to tender payment for the amount due and owing under the Agreement and Guaranty.
26. As result, after applying all lawful setoffs, payments, and credits, Plaintiffs suffered damages under the Agreement in the amount of $271,602.00, together with one and one-half percent (1.5%) monthly service charge on the overdue principal balance, along with all collection costs and reasonable attorneys’ fees related to collecting any past-due amounts.
WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in favor of Plaintiffs and against Lee and award damages of $271,602.00, attorneys’ fees and costs, and grant such other and further relief as the Court deems just and proper.
COUNT III – UNJUST ENRICHMENT
27. Plaintiffs hereby incorporate by reference as though fully set forth herein each of the allegations contained in paragraphs 1 through 26.
28. Lee Diversified was enriched by accepting materials provided by Ricochet without providing payment for those materials.
29. Lee Diversified’s retention of those materials for their gain and benefit without payment to Plaintiffs is inequitable and unjust and occurred at Plaintiffs’ expense, and therefore caused Plaintiffs damages.
30. As a result, it would be unjust to allow Lee Diversified to retain the benefits of the materials provided by Ricochet without making payment for the materials provided.
WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in favor of Plaintiffs and against Lee Diversified and award damages of $271,602.00, attorneys' fees and costs, and grant such other and further relief as the Court deems just and proper.
Respectfully submitted,
SPENCER/FANE LLP
[signature]
Johnny G. Beech, OBA No. 655
George S. Freedman, OBA No. 15764
Spencer Fane LLP
9400 N. Broadway Ext., Suite 600
Oklahoma City, Oklahoma 73114
Telephone: (405) 844-9900
Facsimile: (405) 844-9958
Email:
[email protected]
[email protected]
Attorneys for Plaintiff
VERIFICATION
STATE OF MISSOURI )
COUNTY OF Warren ) ss.
I, Michael Stout, state that I am of lawful age and sound mind, that I am an authorized representative of both River City Steel Company and Ricochet Pipe, LLC, that I have read the foregoing Petition, that I have personal knowledge of the facts set forth therein, and that the same are true and correct to the best of my knowledge, information, and belief.
By: ___________________________
Michael Stout, authorized agent
Subscribed and sworn to before me this 2nd day of March, 2026.
My Commission Expires: 10-28-2026
River City Steel Company
6501 S. Spoede Lane
Warrenton, Missouri 63383
Credit Application
Name of Business: Lee Diversified Services, LLC
Billing Address: P.O Box 85
Shipping Address: Multiple Yards
City: Piedmont State: OK Zip: 73078
Phone# (405)240-2177 Fax#
Taxpayer ID#: [Blacked Out]
Resale or Exemption Certificate#: [Blacked Out]
(Please include a copy of your Exemption Certificate with completed Credit Application)
Name of person to contact for further credit information: Ethan Lee
Banking Information:
Bank Name: Bank 7
Contact: Amy Merrick Phone# (405)810-81000
Address: 1039 NW 13rd St Oklahoma City, OK 73116
Account Number 5978
Trade References:
RJ Steel Trading Midland, TX (432)1634-46880
(Name) (Address) (Phone & Fax)
Superior Pipe and Post Casenin, OK (405)332-33016
(Name) (Address) (Phone & Fax)
Texas Tubulars Midland, TX (817)846-5506
(Name) (Address) (Phone & Fax)
Four Point Reclamation El Reno, OK (405)228-9445
(Name) (Address) (Phone & Fax)
River City Steel Company
6501 S. Spode Lane
Warrenton, Missouri 63383
Credit Application
In the event our account is not paid according to the term set forth in the invoice or statement, we agree to pay a service charge of \( 1 \frac{1}{2} \% \) per month (or the maximum allowed under the applicable state laws) on the principal balance during the term of delinquency. If the account becomes more than 30 days delinquent and is placed for collection, we agree to pay reasonable collection charges and if placed in the hands of the attorney for collection or suit, we agree to pay reasonable attorney fees. It is expressly understood and agreed that the term and conditions of quotation and sale are incorporated by reference herein and are part of the contract between parties. The party or parties signing the application certify that the name of the firm as stated above is correct, that the firm is not insolvent, and that if the firm is a corporation, it is in good standing. The above information is for the purpose of obtaining credit and is warranted to be true. I/We hereby authorize the firm to whom this application is made to investigate the references listed pertaining to my/our credit and financial responsibility.
This statement (both the printed and written matter) has been carefully read by the undersigned. I/We hereby represent and warrant that this statement is a full, complete, and correct statement of financial condition and full disclosure of all debts, financial obligations and liabilities. This statement is given to induce River City Steel Company (RCS) to extend credit. I/We intend the RCS rely on the statement not only for the purpose of the immediate transaction, but also with respect to all future dealing and transactions. I/We understand that the giving of false information in the statement may subject me/us to civil and criminal liabilities and may be the basis of denying me/us a discharge in bankruptcy. A twenty-five dollar ($25) NSF check fee will be assessed for each time a check is deposited and returned.
Authorized Signature ________ Title CEO
(Officer of Corporation, Partner or Sole Proprietor)
Name (Print) Ethan Lee Date 01/14/2025
Personal Guarantee
In consideration of River City Steel Company (RCS) selling merchandise and extending credit to the above applicant, the undersigned does hereby individually and personally guarantee to RCS payment of such sums of money as may at any time hereafter become due and owing to RCS from said applicant for merchandise sold to the applicant. This guaranty is given to induce RCS to extend credit. I/We intend the RCS may extend or alter the time of any payment, without notice to or consent of the Undersigned. I waive notice of acceptance of the guaranty, notice of presentment, demand for payment, or protest of any indebtedness. RCS may proceed against me to collect any debt without first proceeding against any other person, firm or corporation. If it becomes necessary to enforce this guaranty by suit, I agree to pay RCS interest and attorneys' fees as allowed by law.
Authorized Signature ________
Title CEO
Name (Print) Ethan Lee
Date 01/14/2025
LEE DIVERSIFIED SERVICES, LLC
10936 NW EXPRESSWAY STE A
YUKON OK 73099-8230
Date Issued: July 5, 2024
Letter ID: L2046720032
Taxpayer ID: **--**'6608
TRO
Licenses/Permits at this Location
SALES TAX PERMIT
County CANADIAN COUNTY
Holders of an Oklahoma Sales Tax Permit will find notice of penalties for violation of the Oklahoma Sales Tax code at tax.ok.gov
If the sales tax permit at this location becomes invalid then all associated permits will become invalid. If the business changes location or ownership or is discontinued for any reason, this permit must be returned to the Oklahoma Tax Commission for cancellation WITH AN EXPLANATION ON THE REVERSE SIDE
<table>
<tr>
<th>Business Location</th>
<th>Industry Code</th>
<th>City Code</th>
<th>Site Effective</th>
<th>Expires</th>
</tr>
<tr>
<td>LEE DIVERSIFIED SERVICES, LLC<br>10936 NW EXPRESSWAY STE A<br>YUKON OK 73099-8230</td>
<td>213112<br>424610</td>
<td>0921</td>
<td>July 3, 2024</td>
<td>July 3, 2027</td>
</tr>
</table>
Sales Account ID
Site Permit Number
1818791936
PLEASE POST IN CONSPICUOUS PLACE
Mark Wood, Chairman
Shelly Pauk, Vice-Chairman
Charles Prater, Secretary Member
Non-Transferable
This permit is a probationary permit for the first six (6) months after the permits issuance. After the probationary period has passed, this permit will be valid for an additional thirty (30) months unless you are notified of the Commissions refusal to extend the permit. You may not use the permit during the probationary period to obtain a commercial license plate for your motor vehicle.
The probationary permit will not automatically be renewed if (1) factual inaccuracies are included in the application, (2) you or any of the partners, officers or members of the entity holding the probationary permit are delinquent in the filing of tax returns and/or payment of taxes, or (3) you have purchased the business or stock of goods/assets from a business who has a tax liability.
RICOCHET PIPE LLC
Customer Open Balance
All Transactions
Accrual Basis
<table>
<tr>
<th>Type</th>
<th>Date</th>
<th>Num</th>
<th>Memo</th>
<th>Due Date</th>
<th>Open Balance</th>
<th>Amount</th>
</tr>
<tr>
<td colspan="7"><b>LEE DIVERSIFIED SERVICES, LLC</b></td>
</tr>
<tr>
<td>Invoice</td>
<td>08/01/2025</td>
<td>28726</td>
<td></td>
<td>08/31/2025</td>
<td>20,988.00</td>
<td>20,988.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>08/01/2025</td>
<td>28728</td>
<td></td>
<td>08/31/2025</td>
<td>21,420.00</td>
<td>21,420.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>08/15/2025</td>
<td>28757</td>
<td></td>
<td>09/14/2025</td>
<td>20,871.00</td>
<td>20,871.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>08/15/2025</td>
<td>28759</td>
<td></td>
<td>09/14/2025</td>
<td>20,322.00</td>
<td>20,322.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>08/15/2025</td>
<td>28760</td>
<td></td>
<td>09/14/2025</td>
<td>20,070.00</td>
<td>20,070.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>08/18/2025</td>
<td>28763</td>
<td></td>
<td>09/17/2025</td>
<td>20,619.00</td>
<td>20,619.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>08/18/2025</td>
<td>28764</td>
<td></td>
<td>09/17/2025</td>
<td>21,492.00</td>
<td>21,492.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>08/18/2025</td>
<td>28767</td>
<td></td>
<td>09/17/2025</td>
<td>20,970.00</td>
<td>20,970.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>09/15/2025</td>
<td>28846</td>
<td></td>
<td>10/15/2025</td>
<td>21,141.00</td>
<td>21,141.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>09/15/2025</td>
<td>28848</td>
<td></td>
<td>10/15/2025</td>
<td>21,087.00</td>
<td>21,087.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>09/15/2025</td>
<td>28850</td>
<td></td>
<td>10/15/2025</td>
<td>20,556.00</td>
<td>20,556.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>09/15/2025</td>
<td>28851</td>
<td></td>
<td>10/15/2025</td>
<td>21,114.00</td>
<td>21,114.00</td>
</tr>
<tr>
<td>Invoice</td>
<td>09/15/2025</td>
<td>28854</td>
<td></td>
<td>10/15/2025</td>
<td>20,952.00</td>
<td>20,952.00</td>
</tr>
<tr>
<td colspan="4">Total LEE DIVERSIFIED SERVICES, LLC</td>
<td></td>
<td>271,602.00</td>
<td>271,602.00</td>
</tr>
<tr>
<td colspan="4">TOTAL</td>
<td></td>
<td>271,602.00</td>
<td>271,602.00</td>
</tr>
</table>
EXHIBIT B
