KT Winneburg has filed a breach of contract complaint against Kevcor Construction, alleging that Kevcor faltered on an escrow deal.
The lawsuit was filed in Madison County Circuit Court on July 18. KT Winneburg is represented by David Antognoli of Edwardsville.
In court papers, KT claims they are the owner and holder of a promissory note made by Nel-Co Development dated June 3, 2005, in the principal amount of $269,700.
KT says it acquired the note from National City Bank, the note's original payee.
According to KT, the note is secured by a real estate at 207 Eagles Nest in Golden Eagle in Calhoun County.
KT claims Nel-Co and Kevcor entered into a construction an escrow agreement to assure the proceeds of the loan were distributed to pay costs of construction for improvements to the property used to secure the note.
KT claims Kevcor breached the escrow agreement by disbursing proceeds of the loan without first obtaining in writing by the holder of the note and mortgage to make the disbursement.
They also claim Kevcor disbursed the proceeds of the loan without first making an inspection to determine the money would be used to pay for costs incurred for the improvements and failed to certify that the labor and materials that was requested was being used for the improvements.
KT claims as a result of the breach, they have been damaged in an amount equal to the difference between the costs of the improvements actually made and the amount of loan proceeds Kevcor disbursed pursuant to the escrow agreement.
KT is seeking a judgment in excess of $100,000, plus costs.
The case has been assigned to Circuit Judge David Hylla
08 L 649