Terminella-MNB In Judge’s Hands

by Talk Business & Politics ([email protected]) 77 views 

Both sides rested Oct. 24 in the foreclosure-countersuit trial between Metropolitan National Bank and developer Tom Terminella.

In lieu of oral closing arguments, Washington County Circuit Court Judge Kim Smith requested post-trial briefs from both sides. Smith, who ruled against Terminella’s request for a jury trial on Oct. 10, will make the final ruling.

Smith’s ruling isn’t expected for three to four weeks.

The dispute dates back two years to October 2006 and the parties have been involved in direct litigation against each other since May 30, 2007, when MNB filed for foreclosure against Terminella for two loans totaling $14.5 million. Terminella countersued MNB on July 2, 2007.

The trial at hand centers on a $9.63 million loan from MNB to Terminella to prepare lots for sale at a Springdale subdivision called Grand Valley Ridge that was a 40-acre parcel of a larger 160-acre development.

MNB alleges Terminella defaulted on the loan; Terminella alleges MNB breached the loan contract first by refusing to continue to fund the interest carry payments out of the loan proceeds.

In testimony from Washington County president Larry Olson on Oct. 20, MNB sought to show that Terminella was in “technical default” as early as the summer of 2006.

In testimony Oct. 22, Terminella said he was “relieved” after reviewing the loan documents following the call from MNB when he couldn’t find any contract language that limited him to a 12-month period of interest carry. It is MNB’s position that under its loan agreement with Terminella, the bank would only fund 12 months of interest payments.