Di Salvo Properties files second suit after $500k investment
An investor says it was not paid interest or a second deed of trust as promised after investing $500,000.
Di Salvo Properties filed a complaint Aug. 24 in Madison County Circuit Court against Bluff View Commercial, W.R. Farm and Debi Purvis.
Di Salvo claims it entered into a joint venture agreement with Bluff View on Sept. 26, 2007, in which it agreed to provide $500,000 to Bluff View.
Under the terms of the agreement, Bluff View agreed to provide Di Salvo with a 10 percent Class B Membership interest in the company, which means Di Salvo would have a 10 percent minority share in Bluff View. In addition, Bluff View arranged to pay Di Salvo an annual interest payment at seven percent and to provide Di Salvo with a second deed of trust on property, according to the complaint.
Di Salvo thought Bluff View had given it a second deed of trust after Bluff View's member, Debi Purvis, delivered a commitment for title insurance to it, the complaint says.
But on Aug. 17, Di Salvo claims it discovered it does not have the second deed of trust on the property and the commitment for title insurance it received was not genuine.
"Purvis made the foregoing representation to Plaitniff with knowledge that the representation was false," the suit states.
In addition, Bluff View has failed to pay the annual interest payments, according to the complaint.
In the four-count suit, Di Salvo is seeking actual damages of more than $50,000 and a judgment of more than $100,000, plus costs, attorneys' fees and other relief the court deems just. It is also asking the court to direct the defendants to execute a second deed of trust on the property.
Kurt S. Schroeder of Belleville will be representing it.
Madison County Circuit Court case number: 09-L-879.