In a case involving an alleged breach of contract, a judge has awarded a real estate developer $75.4 million judgment against Delta Community Credit Union.
According to the attorneys, their client, David R. Pearson, alleged he sustained damages to several of his companies due to the failure of the $4 billion Delta Community in Atlanta to perform under a loan commitment, alleged attempts to prevent Pearson from drawing on a special purpose credit facility and the alleged breach of the contracts.
One of Pearson’s attorneys, Fred Bentley Jr., alleged that one of the issues involved the interpretation of negotiated credit facility contract and the valuation of multiple valuable properties Pearson contributed “as free and clear collateral in return for the loan.” Bentley said, adding that Pearson made all of his payments.
Delta Community is planning to appeal and believes the judgment is not supported by facts or the law, said J.D. Humphries, an attorney with Stites and Harbison in Atlanta.
“We are surprised and disappointed with the judgment and we don’t think the law and facts support it,” Humphries told Credit Union Times. “We are conferring with Delta Community and we are planning to appeal.”
Humphries said there is a 30-day period from when the judgment is entered to start the appeal. He said the judgment contains 130 pages.
“We’re still going through it,” Humphries said.
Delta Community has been involved in this litigation for more than a year, said Mary Olson, vice president of marketing. The credit union learned of the judgment late Tuesday, she noted.
“We feel [the judgment] is unwarranted. We do plan to file an appeal and we feel we have a strong case to do so,” Olson said.
Cobb County Superior Court Judge Robert E. Flournoy presided over the bench trial, which took place Dec. 14 to Jan. 9, according to Pearson’s attorney.