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State representative asks judge to dismiss wash lawsuit

October 3, 2012

KANSAS CITY, MO — In papers filed earlier this week, lawyers for Rep. Emanuel Cleaver’s company, The Cleaver Co. LLC, asked a judge to dismiss Bank of America’s lawsuit seeking repayment of more than $1.3 million, The Kansas City Star reported.

The Oct. 1 story stated that the company admits taking out the loan but denies all other allegations. The papers claim the bank hasn’t presented sufficient facts to warrant a decision in its favor and ask the judge to dismiss the case and award legal costs to Cleaver’s company.

Will wash affect U.S. representative’s election?

The Sacramento Bee reported on Sept. 21 that April 17, 2013 has been set by a Jackson County court to resolve the dispute between Rep. Cleaver and Bank of America. Due to mounting fees and interest, $1.5 million is owed on the loan.

The Small Business Administration has guaranteed about 75 percent of the loan, meaning that taxpayers could be footing the bill for more than $1 million if the loan goes into default without some payment from Cleaver.

The Democratic congressman is seeking re-election and blames the lawsuit on a business dispute.

Read the entire articles here and here.