PHILADELPHIA – A commercial bank in New Jersey claims an Illinois restaurant and its owner owes outstanding funds to it in excess of $30,000, comprised of in equipment finance payments and other expenses.
On July 25, Marlin Business Bank of Mount Laurel, N.J. filed suit in the Philadelphia County Court of Common Pleas versus Backwaters Bar & Grill, Inc. and Kenneth Richards, both of Wilmington, Ill.
MBB is a direct lender which provides financing to businesses, in order for them to purchase new equipment and technology.
On or about Jan. 12, 2017, Backwaters executed and delivered an equipment lease contract, which provided for the lease and hire of certain items of equipment as more particularly described therein and provided for payments to be made by Backwaters. In order to induce MBB to enter into the Lease, on or about January 12, 2017,
Richards executed and delivered to MBB a personal guaranty in which Richards guaranteed the complete and absolute performance of all of the obligations of Carmen’s to MBB under the lease.
The lawsuit alleges Backwaters and Richards breached the guaranty by failing to the lease payments and other obligations due under the lease leading to default, which caused MBB to accelerate the remaining payments and to demand immediate presentation thereof. According to the agreement’s forum selection clause, the laws of the Commonwealth of Pennsylvania govern the agreement.
“Despite repeated demands for payment, Backwaters and Richards have failed and refused to pay the lease payments due in accordance with the terms of the lease to MBB,” the suit states.
MBB says the defendants are liable to it for the following expenses:
a.) Past Due Payments – $5,480.00
b.) Past Due Sales Taxes – $383.60
c.) Accelerated Balance (discounted to PV) – $21,703.69
d.) Residual – $1.00
e.) Sales Tax on Accelerate and Residual – $1,519.33
f.) Late Charges – $904.20
g.) Documentation Fees – $159.00
h.) Interim Rent – $293.19
i.) Less Cash on Account – ($500.00)
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Total – $29,944.01
Per the terms of the equipment finance agreement, MBB is entitled to expenses of enforcement, which so far is $500 and currently accruing as the action proceeds.
For counts of breach of contract, promissory estoppel/detrimental reliance, unjust enrichment and quantum meruit, the plaintiff is seeking damages in the amount of $30,444.01, plus additional fees, cost of suit, interest and such other and further relief as the Court deems just and proper in this matter.
The plaintiff is represented by Edward R. Dietz Jr. of Marlin Business Bank, in Mount Laurel, N.J.
Philadelphia County Court of Common Pleas case 180702925
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com