CHARLESTON — Star USA Federal Credit Union is suing another credit union, citing alleged breach of contract and breach of duty.
Star USA filed a complaint against Members 1st Federal Credit Union in Kanawha Circuit Court, alleging that the loan servicer failed to administer a loan in accordance with good-lender policies. According to the lawsuit, the plaintiff alleges that on June 10, 2010 the defendant sold 90 percent of its legal right to a real estate loan to the plaintiff for the amount of $754,414.07. As a result of defendant's negligent acts and omissions, the suit states, the real estate accumulated taxes of $208,365.70 over seven years and because the property was under the control of an owner with limited resources to maintain the building, the value substantially depreciated.
The plaintiff holds Members 1st Federal Credit Union responsible because the defendant allegedly failed to monitor the borrower's payments of real estate taxes and failed to notify plaintiff of the same, and negligently allowed a lien and encumbrance against the real estate with priority to the mortgage that secured the participation loan. Star USA requests a trial by jury and seeks an order declaring that the plaintiff has no obligation to contribute to the real estate property taxes and award for the total unpaid balances due under the loan, and such other proper and just relief. The plaintiff is represented by James W. Lane Jr. of Flaherty Sensabaugh Bonasso PLLC in Charleston.
Kanawha Circuit Court Case number 19-C-39