A Missouri company claims it is owed more than $200,000 after another company failed to repay it.
Di Salvo Properties filed a lawsuit Aug. 24 in Madison County Circuit Court against Wood River Landing, doing business as WR Landing.
Di Salvo alleges it entered into a tenants in common agreement with WRL in December 2007.
In the agreement, Di Salvo gave WRL $400,000 toward property in Wood River near Interstate 255 and Illinois Route 143.
"WRL intends to sell the Property upon securing a gas convenience store and a restaurant to occupy the Property," the agreement stated.
In return, WRL agreed to repay the money, plus 10 percent interest by March 31, 2008, the complaint says. In addition, it promised Di Salvo a 20 percent interest in the property, as a tenant in common, when it acquired the property and 20 percent of the net profit, which is defined as the gross sale proceeds minus all expenses of the project and acquisition costs.
However, WRL failed to repay the money on March 31, 2008, so Di Salvo and WRL entered into an extension agreement on April 7, 2008, according to the complaint. Under the extension agreement, Di Salvo extended the time frame for repayment of one-half of the money to April 30, 2008, and the remaining money to June 30, 2008. WRL agreed that the interest rate would increase to 12 percent and Di Salvo's share of the net profit would increase to 22 percent, the suit states.
Still, by June 30, 2008, WRL still had not repaid the complete sum it owed to Di Salvo, so the two companies entered into another extension on March 25. In the second extension, Di Salvo agreed to extend the repayment until May 31 as long as its ownership interest in the property would be increased to 25 percent, it claims.
Although WRL has paid $254,023, it still owes Di Salvo $200,000, plus 12 percent interest, according to the complaint.
In addition to the money it says it is owed, Di Salvo is seeking interest, costs, attorneys' fees and other relief the court deems just.
It is also asking the court to enter a judgment directing WRL to specifically perform and fulfill the terms of the agreements and to deliver a sufficient deed conveying to Di Salvo an undivided 25 percent interest as tenant in common in the property. In addition, Di Salvo is asking the court to enter a declaratory judgment declaring that upon the sale of the property, Di Salvo is entitled to 25 percent of the net profit from the sale.
It will be represented by Kurt S. Schroeder of Mathis, Marifian, Richter and Grandy of Belleville.
Madison County Circuit Court case number: 09-L-878.