PHILADELPHIA – A new breach of contract suit sees a business group litigating with a construction firm over more than $70,000 in allegedly-unpaid and outstanding fees connected to the sale of receivables between the parties.
On March 28, Complete Business Solutions Group, Inc. of Philadelphia filed suit in the Philadelphia County Court of Common Pleas versus Davis Restoration & Construction Services, LLC and Bruce Davis, both of Charlotte, Mich.
On Aug. 3, Complete Business Solutions Group and Davis Restoration & Construction Services entered into an agreement, where the plaintiff purchased future receivables from the corporate defendant, with Davis acting as the guarantor for this agreement.
“In this agreement, plaintiff purchased $79,999 of Davis Restoration & Construction Services, LLC’s accounts receivable for $55,986, wiring said amount to business defendant on the day the transaction was consummated. The month following its sale of receivables to plaintiff, defendant Davis Restoration & Construction Services, LLC was unable to meet the terms of its agreement with plaintiff, and funds could not be retrieved from its bank account as had originally been anticipated. After Sept. 5, plaintiff could no longer retrieve funds from the designated bank account of defendant,” the suit states.
The plaintiff claims it has attempted to negotiate in good faith and seek payments from the defendant, to no avail, and the defendant has cut off all communication to the plaintiff. Though the plaintiff filed a confession of judgment against the defendants on Oct. 16, the defendant hired an attorney which had the judgment stricken.
The plaintiff alleges the defendants are liable to it for the following expenses:
a.) Principal – $66,419
b.) Default Fee – $500
c.) Blocked Account Block Fee – $250
d.) Collection & Attorney’s Fees – $6,573
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Total – $73,742
For counts of breach of contract, unjust enrichment, fraudulent/negligent misrepresentation and conversion, the plaintiff is seeking damages in the amount of $73,742 in direct interest, together with continuing interest accruing from the date of this filing at the judicially allowable rate and costs, or in the alternative: Treble damages of $221,226 in punitive damages due to the intentional nature of this action and together with continuing interest accruing from the date of this filing at the judicially allowable rate and costs.
The plaintiff is represented by Norman M. Valz of the Law Office of Norman M. Valz, in Philadelphia.
Philadelphia County Court of Common Pleas case 180303433
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com