Partners didn't contribute full amount into stock, suit says

Kelly Holleran Mar. 5, 2009, 11:00am

A Madison County man has filed suit against two other Madison County men, alleging they did not contribute an agreed-upon amount of money into a corporation's stock.

Steven D. Grimm alleges Jerry L. Casey, president and director of MCC Enterprises of Illinois, and Bryan K. Harris, officer and director of the company, only injected $143,000 into the corporation's stock instead of the agreed-upon $163,000.

Casey and Harris breached their duties of loyalty, full disclosure, due care and good faith by allowing each other to acquire one-third of the corporation's common stock without having paid full value for it, according to the complaint filed Feb. 27 in Madison County Circuit Court.

In addition, both men used the company's credit card to purchase personal items without reimbursing the corporation, the suit states.

"As a direct and proximate result of one or more of the foregoing breaches of duty, the corporation has sustained damages in excess of $100,000," the suit states.

In addition, in a March 2007 agreement between Grimm and Casey, Casey agreed to deposit $12,000 into the lawyer's trust account to secure the payment of the company's remaining bills, Grimm alleges.

However, Casey has failed to deposit the money, according to the complaint.

In the two-count suit, Grimm is seeking a judgment in excess of $112,000, plus interest, late charges, penalties, attorneys' fees, costs and other relief the court deems just.

Steven Grimm will be representing himself.

Madison County Circuit Court case number: 09-L-0188.

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