A company involved in the real estate purchase of a hotel that went south is countersuing the plaintiff for $2.75 million after it backed out of the deal.
Main Street Partners LLC filed a lawsuit on May 13 against Satkar Hospitality LLC.
According to the complaint, the plaintiff and the defendant entered into an agreement for the sale of real property located at 308 State Route 157 in Edwardsville on Aug. 18, 2014.
As part of the agreement, Main Street allegedly provided the defendant with a $250,000 earnest money deposit, held by Illinois Real Estate Title Center LLC.
However, the plaintiff argues that because the defendant has failed to communicate and comply with its obligations, and that new circumstances have impacted the value of the property, it wishes to void the agreement.
Main Street claims Satkar Hospitality has refused to return the deposit despite its direct requests, the suit states.
Satkar Hospitality filed a 2-count counterclaim against Main Street Partners on June 23 through attorney Keith Cheung of Curtis Heinz Garrett & O’Keefe in Clayton, claiming it performed all of the terms and conditions of the contract and accusing the counter-defendant of breaching the contract by refusing to purchase the property.
“Defendant states that it has always been ready, willing and able, and is still ready, willing and able to fulfill the contract on its part, and to convey to Main Street a good and proper deed to the real property, and again offers to do so,” the counterclaim states.
“Defendant has no adequate remedy at law because the real property is unique and a wasting asset,” it continues.
Satkar argues that it has been damaged by Main Street’s failure to close the transaction because the fair market value of the real estate on the date of closing was $2.5 million, which is about $250,000 less than the contract purchase price.
The counter-plaintiff also argues that it suffered damages of $35,000 because it was unable to remove furnishings from another hotel and place them in the hotel at issue.
Satkar seeks a judgment ordering Main Street to pay $2.75 million in exchange for a General Warranty Deed conveying the property to the counter-defendant. Satkar seeks an additional judgment of $285,000, attorney’s fees, costs and any other relief the court deems just.
Main Street answered the counterclaim on July 23 through attorney Michael D. Schag of Hyel, Royster, Voelker & Allen in Edwardsville, arguing that it was prevented from performance because of Satkar’s conduct.
Main Street accuses Satkar of failing to satisfy conditions established under the contract, thus “providing an excuse from performance on the part of counter-defendant.”
Further, Main Street claims Satkar cancelled the contract prior to performance, “obviating” Main Street’s ability to carry it out.
The plaintiff seeks damages in excess of $50,000, plus attorney’s fees and costs.
Madison County Circuit Court case number 15-L-609