PHILADELPHIA – A settlement has been reached between a New York City credit firm and a Churchville taxi cab company in a breach of contract action, where the credit group believed the cab company defaulted on a $500,000 payment to the plaintiff.
Per a praecipe filed by plaintiff counsel Scott M. Klein on Sept. 6, Progressive Credit Union’s litigation against F&G Taxi Cab Co., Inc. was resolved for an undisclosed amount and requested to be marked as “settled, discontinued and ended.”
Progressive, of New York City, first filed suit in the Philadelphia County Court of Common Pleas on July 5, 2017 versus F&G Taxi Cab Co., Inc. of Churchville.
“On Nov. 19, 2013, lender extended a commercial loan to borrower in the amount of $717,000.00. Borrower’s obligations to repay the Loan were evidenced by a Secured Promissory Note dated Nov. 19, 2013 borrower executed in favor of lender in the principal amount of $717,000.00. On that same date, defendant executed, and delivered to lender, a Guaranty of Payment which guaranteed payment of all obligations of borrower to lender; whether arising under the Note or otherwise. As set forth therein, the Guaranty was provided by defendant for good and valuable consideration and to induce lender to make the loan to borrower. Lender is now and has been, at all times, the holder of the Note and the Guaranty,” the complaint stated.
“Pursuant to the Note, borrower was obligated to make thirty-five (35) monthly payments to the Lender in the amount of $3,362.19 commencing on Dec. 19, 2013 and continuing on the nineteenth (19th) day of each consecutive month thereafter until Nov. 19, 2016; at which time all outstanding balances under the Note would be due and payable,” the complaint added.
As a direct result of defendant’s breach of the Guaranty, the lender claimed it suffered damages, in the liquidated amounts set forth below:
Principal: $ 576,602.45
Interest Through June 22, 2017: $ 228.70
Search Fees: $ 1,720.00
Attorneys’ Fees Through June 22, 2017: $ 5,000.00
TOTAL: $ 583,551.15
Prior to settlement and for a single count of breach of contract, the plaintiff was seeking damages in the amount of $583,551.15 plus interest from June 22, 2017 at the per diem rate of $60.82 (3.85 percent per annum) through the entry of the judgment, followed by interest at the statutory rate thereafter, along with all costs and reasonable attorneys’ fees lender shall continue to incur in collection of the outstanding indebtedness under the Note and the Guaranty, and all other relief this Honorable Court may deem just and proper in this matter.
The plaintiff was represented by Scott M. Klein of Brown McGarry Nimeroff, in West Chester.
Per court records, the defendant did not secure counsel in this matter.
Philadelphia County Court of Common Pleas case 170700200
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com