A development business is suing a real estate firm and its principal last month for allegedly failing to make payments on a promissory note after its property caught fire.
All-Jer Development Corporation filed a lawsuit on May 21 in Madison County Circuit Court against Mark Anderson, Anderson Real Estate Holding LLC and Erie Insurance Company, alleging breach of contract.
According to the complaint, All-Jer entered into a promissory note contract with Anderson and Anderson Real Estate Holding on or about Aug. 6, 2007, for a principal sum of $400,000 amortized over a 15-year period at a yearly interest rate of 5 percent.
The suit states that Anderson granted All-Jer a security interest in the form of a seller’s lien on real property and equipment; that the promissory note declares that in the event of payment default by Anderson, all principal, interest and other amounts would become immediately due and payable; and that the defendant was required to maintain a life insurance policy to protect the unpaid balance, with benefits assigned to the plaintiff.
The plaintiff claims the defendant’s real property and equipment were destroyed in a fire on Jan. 29, and was either relocated or sold by the defendant. Anderson allegedly failed to obtain a life insurance policy, refusing to provide proof on and subsequent to Feb. 26. When the defendant allegedly failed to make payments beginning on April 1, the plaintiff demanded the balance in full.
Having stipulated a security interest in Anderson’s property, and alleging monetary injuries, the plaintiff seeks damages in an amount equal to the unpaid sum, all interest accrued, plus attorneys’ fees and costs. The plaintiff is represented by B. Jay Dowling of Sterling and Dowling in Fairview Heights.
Madison County Circuit Court case number 15-L-646