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Firms brawl on alleged bad credit
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Posted on Feb 27 2001
A US mainland-based firm is seeking to collect over $250,000 from a Saipan corporation for allegedly failing to adhere to a debt agreement both parties had entered into last Nov. 22, 1994.
Advance Medical Designs Incorporated has filed a complaint before the US District Court alleging that Advance Textile Corporation has failed to live up to its part of the bargain, based on a consensually signed promissory note that clearly stated the terms of payment for the $250,000 amount the latter had borrowed from the Georgia-based company.
Court documents did not specify what the borrowed money was intended for.
In November of 1994, the defendant executed and delivered to the plaintiff a promissory note payable to the order of AMD, with interest payments commencing from Dec. 22, 1994 and continuing with final payment due no later than March 22, 1995 from the inception of the agreement.
After the 120-day period, the agreement stipulated that payments would bear interest at the rate of nine percent per annum on privileged amounts outstanding.
Both companies also consented that in the event of default, the plaintiff AMD will be entitled to all costs of collection, including attorney’s fees if a lawsuit is necessary to procure payment of the promissory note, according to court papers.
The plaintiff has claimed that the defendant has failed to pay the aggravating sum of principal and interest, and has likewise refuse and continues to refuse to pay the outstanding amount due.
As a result, the complainant stated the ATC is indebted to AMD some $250,000 in principal sum, exclusive the nine percent agreed upon interest.
For alleged breach of contract and failure to settle collections woes, the aggrieved party has further asked the federal court to grant it favorable judgment to cover attorney’s fees and costs, as well as other costs the court deems just.
