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Coachmen, All-American win appeal in hotel dispute

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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.

 

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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