Butler County Times Gazette
  • API votes to release equipment, settle legal action

  • Augusta Progress Inc. may never be repaid for a loan to Cinnamon’s Bakery and Caffe.
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  • Augusta Progress Inc. may never be repaid for a loan to Cinnamon’s Bakery and Caffe.
    Wednesday morning, they voted to release their claim on the remaining equipment and settle legal action against them.
    Steve and Stephanie Compton closed the restaurant in downtown Augusta while they still owed API $14,817.81 of a $15,750 loan to help open their business.
    When the loan was originally written, the Comptons agreed that none of the equipment used to collateralize the loan would be sold or used to pay any debt other than the original loan.
    However, in May of last year, the Comptons signed their equipment over to building owner Mike Huddleston. Despite the language in the original loan agreement, API didn’t file the UCC claim on the equipment until Oct. 9, 2013 – about five months after Huddleston received a bill of sale.
    About a week after that UCC filing, API and its Attorney, David All, secured a journal entry in District Court because of the lien they had on the equipment.
    But when that judgment was handed down, All and API had not mentioned Huddleston’s competing claim for the equipment in the documentation for the court or during the hearing.
    Huddleston filed a motion seeking relief from the judgment awarding the claim to API and he also asked for sanctions against the board and All because of how the situation was handled.
    API met Wednesday, April 9 and decided to give up any claim to the equipment and settle the case with Huddleston.
     After a 15-minute executive session in which the board discussed the action with attorney Darren Patterson, who was hired at a recent meeting to deal with this matter, Bill Morris made a motion to release the remaining equipment to Huddleston and allow Patterson to negotiate an additional amount to settle the pending legal action.
     

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