ILNews

Coachmen, All-American win appeal in hotel dispute

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals affirmed a District Court ruling in favor of two Indiana companies that were involved in a Tennessee hotel project that failed to develop.

Coachmen Industries Inc. and All-American Homes LLC were involved in a proposed hotel development in Pigeon Forge, Tenn., that would be built with modular components that All-American was to design and provide and that Coachmen was to finance.

A broad development agreement was executed in 2004 between the Indiana companies and Winforge Inc. in North Carolina and Mod-U-Kraf Homes LLC of Virginia to build a hotel, but the project proceeded in “fits and starts,” according to court records.

After a protracted period of planning, the city of Pigeon Forge rejected the building permit for the project because its sewer system lacked capacity. Ten days later, Coachmen notified Winforge that it was in default on a loan agreement. Its two principals had drawn loans of about $1.2 million – more than 40 percent of the total project cost.

Coachmen foreclosed on the property and purchased it for $1.8 million in March 2006. Less than a year later, it was sold at auction for $283,142.79.

The 7th Circuit rejected Winforge’s arguments that the District Court erred in concluding the contract was not a valid contract, or that the defendants were not in breach. The court found that Winforge had not met its obligations under the development agreement, which prevented modular units from being built.

“The district court reasonably concluded that the Mod-U-Kraf’s failure to construct any modular units did not constitute a breach of the contract because its failure to do so was due to Winforge’s deficient performance of its obligations under the contract, not Mod-U-Kraf’s or All-American’s deficiencies,” Judge Sue Myerscough, of the Central District of Illinois, wrote in a unanimous opinion.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Put aside all the marijuana concerns, we are talking about food and fiber uses here. The federal impediments to hemp cultivation are totally ridiculous. Preposterous. Biggest hemp cultivators are China and Europe. We get most of ours from Canada. Hemp is as versatile as any crop ever including corn and soy. It's good the governor laid the way for this, regrettable the buffoons in DC stand in the way. A statutory relic of the failed "war on drugs"

  2. Cannabis is GOOD for our PEOPLE and GOOD for our STATE... 78% would like to see legal access to the product line for better Hoosier Heath. There is a 25% drop in PAIN KILLER Overdoses in states where CANNABIS is legal.

  3. This article is excellent and should be required reading for all attorneys and would-be attorneys, regardless of age or experience. I've caught myself committing several of the errors mentioned.

  4. Bill Satterlee is, indeed, a true jazz aficionado. Part of my legal career was spent as an associate attorney with Hoeppner, Wagner & Evans in Valparaiso. Bill was instrumental (no pun intended) in introducing me to jazz music, thereby fostering my love for this genre. We would, occasionally, travel to Chicago on weekends and sit in on some outstanding jazz sessions at Andy's on Hubbard Street. Had it not been for Bill's love of jazz music, I never would have had the good fortune of hearing it played live at Andy's. And, most likely, I might never have begun listening to it as much as I do. Thanks, Bill.

  5. The child support award is many times what the custodial parent earns, and exceeds the actual costs of providing for the children's needs. My fiance and I have agreed that if we divorce, that the children will be provided for using a shared checking account like this one(http://www.mediate.com/articles/if_they_can_do_parenting_plans.cfm) to avoid the hidden alimony in Indiana's child support guidelines.

ADVERTISEMENT