State Resources sues over unpaid promissory note

By Kelly Holleran | Jan 21, 2010

A Nebraska company has filed suit against two Edwardsville companies and two defendants, demanding money they allegedly defaulted on and requesting collateral.

Plaintiff States Resources Corp. claims Meridian Bank lent defendant Tech Center $242,000 after entering into a promissory note with the company on April 4, 2008. Under the terms of the note, Tech Center agreed to pay the bank 35 monthly payments beginning on May 4, 2008, and a final payment of $223,340.02 due on April 4, 2011, according to the complaint filed Jan. 14 in Madison County Circuit Court.

Defendants Thomas B. Baker Jr., Brent A. Boyles and Summit Development and Holdings guaranteed the note, promising payment should Tech Center default, the suit states.

In addition, Tech Center executed a commercial security agreement and listed collateral as 6 Aster Court in Edwardsville, the complaint says.

However, since the execution of the promissory note, Tech Center has failed to make its scheduled monthly payments, the suit states. In addition, Baker, Boyles and Summit have not contributed any payments, the complaint says.

"After allowing credit to defendant Tech Center for all payments, there remains due and owing from said defendant to plaintiff as of December 28, 2009 the principal sum of $238,991.43, plus accrued interest in the amount of $7,425.35, plus per diem interest from December 28, 2009 to the date of judgment at the rate of $39.94103, plus fees due in the amount of $20.00, plus late fees due in the amount of $786.78," the suit states.

Although States Resources has demanded Tech Center deliver its collateral in exchange for its defaulted payments, Tech Center has refused to comply.

In addition to the money it says it is owed, States Resources Corp. is seeking attorneys' fees and costs. It is also asking the court to award it possession of the collateral, to order the defendant to deliver the collateral, to award it any portion of the collateral the defendant fails to deliver and to reward it damages for the defendant's detention of the collateral.

Hillary H. Sommer and Shawn T. Briner of Martin, Leigh, Laws and Fritzlen in St. Louis will be representing it.

Madison County Circuit Court case number: 10-L-30.

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