A Highland corporation has filed suit against the company it claims failed to repay more than $150,000.
Foresight Services claims it began negotiations in early 2009 with defendant EMIP and EMIP's president, defendant Michael Daily. In the negotiations, Foresight Services agreed to finance EMIP's business, which operated tree nurseries using an original way to air prune and cultivate trees, according to the complaint filed Nov. 8 in Madison County Circuit Court.
After learning about EMIP's business, Foresight agreed to extend it a line of credit. In exchange, EMIP promised to issue Foresight a promissory note to repay the loan with interest and to enter a security agreement granting Foresight interests in EMIP's assets, the suit states. In addition, Daily agreed to act as personal guaranty on the promissory note.
Following the issuance of the note and the security agreement, Foresight provided EMIP with $177,619.99, the complaint says.
Under the terms of the loan documents, EMIP agreed to provide Foresight with copies of certain stock certificates, of monthly budgets, of a balance sheet and itemized asset list, of an itemized option purchase agreement and of an executed shareholder agreement. However, after receiving the money from Foresight, EMIP failed to provide the company with the requested documents, Foresight claims.
When EMIP failed to receive the documents and when it found out that 40,000 trees planted had not been sold, Foresight deemed EMIP insolvent and incapable of overcoming its insolvency, according to the complaint.
Foresight then wrote EMIP a letter, declaring it to be in default. Foresight demanded that EMIP cure the default within 30 days, the suit states.
When the default had not been cured by Oct. 28, Foresight wrote EMIP another letter, demanding immediate repayment of the note, the complaint says. Still, it claims it has yet to receive the money.
Foresight alleges breach of contract, breach of credit note and unjust enrichment against EMIP and Daily.
In addition to the money it says it is owed, Foresight is seeking pre- and post-judgment interest, attorneys' fees, costs and other relief the court deems just.
It will be represented by Wendy S. Menghini of Greensfelder, Hemker and Gale in St. Louis.
Madison County Circuit Court case number: 10-L-1134.