ST. LOUIS – A federal court has ruled in favor of a financial institution in a suit over a loan in default.
Judge Rodney Sippel of the U.S. District Court for the Eastern District of Missouri granted defendant PNC Bank's motion for summary judgment in a June 11 ruling.
"Because it is undisputed that the loan is in default and that the damages have been correctly calculated, I will grant the motion for summary judgment," Sippel wrote.
Plaintiffs Laterryl Saddler and Saddler Residential Care Facility (SRCF) sought declaratory judgment and alleged that PNC Bank failed to properly credit their payments on the loan. The defendant filed counterclaims alleging breach of note and breach of guaranty.
The plaintiffs operate a residential care facility at 730 Hodiamont Ave., St. Louis. The ruling states SRCF executed a promissory note for the balance of $178,006.62 on July 1, 2003, and Saddler and her now-deceased husband were guarantors of the note.
The ruling states SRCF made a modification agreement with the defendant on Feb. 2, 2010, in which the note was modified to extend the maturity date, adjust the interest rate and modify monthly payments. The total amount of the loan was due payable on March 1, 2012, and in the event of default the interest rate would increase to 13 percent and SRCF would pay all costs related to collection.
The plaintiffs executed a forbearance agreement on Dec. 31, 2012, and PNC agreed to forebear its right to immediately enforce its rights under the loan documents until Jan. 1, 2018. The plaintiffs allegedly agreed to pay all sums due by that date but failed to do so.
Saddler filed a petition for declaratory judgment on Dec. 26, 2017, challenging the defendant’s title to the note. The defendant removed its case to the federal court on Feb. 2, 2018, due to diversity jurisdiction and the plaintiff filed an amended complaint for declaratory judgment on March 22, 2018.
"SRCF and Saddler filed this complaint seeking a declaratory judgment concerning the loan documents at issue in this matter," Sippel wrote. "I find that the 2006 note is due and owing, SRCF and Saddler are in default of their obligations under the note and guaranty, PNC has a right to enforce the note and guaranty, and that the balance of the loan is not in dispute. I also find that PNC is entitled to a judgment on its counterclaims for breach of note and breach of guaranty."
U.S. District Court for the Eastern District of Missouri case number 4:18-CV-00192