West Virginia Record

Wednesday, January 22, 2020

Justice Holdings alleges Glade Springs Village Property Owners Association owes millions

State Court

By Kyla Asbury | Jan 14, 2020

Court

BECKLEY – Justice Holdings is suing Glade Springs Village Property Owners Association over an alleged failure to pay on a debt.

GSVPOA entered into a loan agreement on July 1, 2001, with Cooper Land Development and under the loan, Cooper agreed to loan GSVPOA up to $8 million to fund construction and installation of water, sewer and electric utilities to serve the village of Glade Springs, according to a complaint filed in Raleigh Circuit Court.

Justice Holdings claims under the loan agreement, Cooper was to record the date and amount of all principal advances and no failure to record, or error in recordation affected GSVPOA's obligation to repay the amounts advanced by Cooper.

GSVPOA and Cooper executed a first amendment to the loan agreement in 2009.

In 2010, Cooper assigned and transferred all of its rights and obligations regarding the loan to Justice Holdings, according to the suit.

Justice Holdings claims it and GSVPOA amended the loan agreement five more times, but at no time during any of those amendments did GSVPOA assert that the loan was not valid or enforceable.

When the parties made the sixth amendment in 2018, the amendment included a negative pledge to Justice Holdings by GSVPOA of all of its assets and promise, without the prior written consent of Justice Holdings, not to cease to own or to pledge any of these assets to any other entity, nor to permit or grant, except to Justice Holdings, any lien, encumbrance, security interest, cloud, mortgage or interest in favor of any other party on any of the assets, according to the suit.

Justice Holdings claims by June 30, GSVPOA failed to pay the balance and as of Oct. 31, the unpaid principal balance due and payable to Justice Holdings under the loan agreement exceeded $11.4 million.

Justice Holdings claims GSVPOA breached its contract.

The plaintiff is seeking an order precluding and prohibiting GSVPOA from granting or permitting any grant, pledge, lien or security interest to a third party on any asset of GSVPOA. Justice Holdings is represented by Shawn P. George and Jennie Ovrum Ferretti of George & Lorensen.

Raleigh Circuit Court case number 19-C-481

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