By Lawrence Smith
Monongalia Bureau
www.wvrecord.com
Clarksburg - A tentative settlement has been reached in a lawsuit accusing the Gilmer County Clerk's Office of improperly recording a financing statement for property in a housing project with ties to Glenville State College.
U.S. District Judge Frederick P. Stamp Jr. on Oct. 11 dismissed a cross claim and third-party complaint Summit Community Bank of Winchester, Va., filed against the clerk's office last October. Summit's cross claim and complaint was in response to a breach of contract suit filed against it, New Horizon Home Sales and Gilmer Housing Partners by Textron Financial Corporation in March 2010.
In its complaint, Textron, a Providence, R.I.-based commercial financing firm, alleged New Horizon, an Athens, W.Va.-based modular home dealer, defaulted on paying them for property they helped them acquire in the River's View subdivision outside of Glenville in 2005 when New Horizon, three years later, sought permanent financing from Summit's branch in Moorefield.
Textron sought judgment against New Horizon, Summit and GHP for $270,166.77, the proceeds from the sale of the initial two lots, and two other lots they helped New Horizon finance.
Records show, GHP was the previous owner of the lots in the River's View subdivision, located on W.Va. 5 near the Gilmer Federal Corrections Institution. According to the Secretary of State's Office, GHP is a for-profit corporation whose address is the home of Glenville State College President Peter Barr.
Also, Barr is listed as GHP's sole incorporator and manager.
In its cross claim, and complaint, Summit said had it not been for a defective Uniform Commercial Code fixture filing recorded by the clerk's office, they wouldn't be involved in the suit. Specifically, they alleged the clerk's office did not follow state law by recording New Horizon as a co-debtor on the fixture filing along with Jack Jones, its president.
Specifically, they alleged when a pre-suit injury was made about New Horizon not being listed as a co-debtor, incoming Clerk Jean Butcher, who replaced the retiring Beverly Marks in last year's election, said that's "'the way it's been done for years.'" Summit sought judgment against the clerk's office for all costs it incurred in the suit, including attorney's fees.
When contacted for the terms of the settlement, Summit's attorney, Edward McDevitt, referred all questions to Wendy Greve, the clerk's office's attorney. Greve was unavailable for comment prior to press time.
Prior to the settlement in Summit's cross claim, and complaint, Stamp on March 15 granted Textron's motion for summary judgment finding they were the superior lien holder on at least one of the property's in question.
In doing so, Stamp granted Textron possession of it, and ordered New Horizon to pay them the entire judgment plus pre-judgment and .25 percent post-judgment interest.
Records show GHP was dismissed from the suit two weeks later.
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