BECKLEY – A Raleigh County businessman is suing Marco Resources LLC and Everett Cook, citing alleged breach of contract and negligence in connection with the lease of a property in Beckley.
Ernest B. Davis Jr. and Beaver-based Maple Ridge LLC filed the complaint in Raleigh Circuit Court against the defendants, Marco Resources LLC and Everett Cook of Raleigh County.
According to the complaint, Marco and Maple Ridge reached an agreement for the lease of a property at 801 Ragland Road in Beckley. The three-year lease agreement was effective Oct. 1, 2015.
Under terms of the lease, Marco agreed to pay Maple Ridge $5,000 a month as well as reimburse Maple Ridge $537.55 for real estate taxes and $184.08 for insurance.
Marco made the initial $5,721.63 rental payment and paid its utility bills for the first three months of the lease, the suit states.
In November 2015, Cook approached Davis about investing in Marco Resources. He told Davis that the company needed cash in order to close a deal on some mineral leases.
In exchange for a $100,000 investment, Cook told Davis he would receive a 7.5 percent non-voting stock in Marco Resources.
Cook presented a summary of assets for the company. According to court records, the summary claimed that Marco Resources had more than $196 million in assets.
Davis and Cook reached a memorandum of understanding on Nov. 17, 2015, and Davis agreed to invest $100,000 with Cook to support Marco Resources.
According to court records, Davis said he now believes the summary misrepresented the assets of Marco Resources. The lawsuit states that Davis relied on that document in making his decision to invest in the company.
Davis requested accounting information from Marco Resources. Despite the request, the company has never provided the accounting.
By January 2016, Marco Resources defaulted on its obligations under terms of the lease and Maple Ridge provided the company with notice of its default.
Even after being notified it was not following the terms of the lease, Marco Resources remained in default.
At the time Maple Ridge filed the complaint, Marco Resources owed the company $39,843.12, not including interest, in back rent and utilities from Jan. 1, 2016, through Sept. 16, 2016.
According the complaint, in September 2016, Marco Resources took steps to try to terminate the lease, even though 24 months remained under terms of the agreement.
The unit was empty from September to November, when Maple Ridge found a new tenant.
The complaint states that Marco Resources’ failure to pay its rental payments and utilities in a timely fashion is grounds for a declaration of default on the terms of the lease agreement.
Moreover, the defaults remain uncured by Marco Resources and the company has not provided Davis with his transferee interest in Marco Resources pursuant to his investment and the MOU. Nor have they provided Davis with the accounting information he has requested, the suit states.
The plaintiff alleges breach of lease, accounting, breach of the memorandom of understanding and negligent misrepresentation.
Davis and Maple Ridge are represented by Ronda L. Harvey and Patrick C. Timothy of Bowles Rice LLP, a Charleston-based law firm.
They have requested a jury trial.
Raleigh Circuit Court case number 17-c-130-H