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.
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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.