ELKINS – Franklin Oil Co. is suing Southern States Cooperative Incorporated after it claims it breached its contract by failing to pay $900,000 pursuant to an agreement.
On July 30, 2015, the parties entered into a sale and purchase agreement in which Franklin agreed to sell and Southern States agreed to buy Franklin’s assets for a total purchase price of $1.9 million, according to a complaint initially filed in Pendleton Circuit Court and then removed to federal court on Aug. 9.
Franklin claims pursuant to the agreement, Southern States was to make $1 million for the first payment and, 60 days of the first anniversary after closing it was to make a $900,000 payment.
The closing of the agreement occurred on Aug. 10, 2015, and Southern States complied with the agreement to the extent that it made the $1 million payment called for in the agreement, however, it has failed to make the $900,000 additional payment, according to the suit.
Franklin claims Southern States’ failure to make the second payment is a breach of contract, as it wrongfully withheld the second payment, which was justly due to the plaintiff.
The defendant’s actions have caused Franklin to suffer damages, according to the suit.
Franklin is seeking damages in the amount of $900,000 with pre- and post-judgment interest. It is being represented by James Paul Gearly of Geary & Geary.
Southern States is represented by Robert C. Chenoweth of Busch, Zurbuch & Thompson.
U.S. District Court for the Northern District of West Virginia case number: 2:17-cv-00105
