Summary judgment is expected this month in foreclosure proceedings on properties in Hays and Plainville connected to downtown Hays developer Chuck Comeau.
Sunflower Bank seeks to foreclose on two mortgages taken out by Oak Street Planing Mill, 201 E. 12th, and a mortgage taken out by several of Comeau’s businesses for seven properties in Plainville.
The bank is asking for judgment on loans and guarantees, including late charges and interest, exceeding $1.6 million.
Named as defendants along with Oak Street Planing Mill are Charles Comeau and his wife, Shirley; Comeau’s companies DFC Holdings Inc., Classic Cloth Inc., Dessin Fournir Inc., DFC Holdings LLC, DFC Corp., Palmer Hargrave Inc., C.S. Post Inc. and Liberty Group; and Christopher Mraz, Los Angeles, and Lenice K. Larson, associates with Dessin Fournir.
In a December hearing before District Judge Blake Bittel in Ellis County District Court, attorney Ashley Comeau, representing all the defendants but Mraz, argued while September and October 2017 payments on the loans were made late on Oct. 10, 2017, they dispute the loans are in default.
In an affidavit, Charles Comeau said the payments were hand delivered Oct. 10, 2017, to the Hays branch of Sunflower Bank after he received an email to check the status of the payments. The affidavit further outlines six instances of correspondence through that month with the bank in which he said there was no reference to the loans being in default, and that no such notice was received until after the November 2017 payment was made.
Sunflower Bank argued the loan documents contain an agreement that they would be in default if the payments were not made when due, on the first of each month, and that each contains an acceleration clause.
According to court documents, Oak Street Planing Mill has defaulted on two mortgages at Sunflower Bank totaling $665,000 on the East 12th Street property, while DFC Holdings Inc., DFC Corp., and Dessin Fournir are in default on a $1.1 million mortgage taken in 2007 on properties in Plainville — 108 N. Main, 211 1/2 Mill, 205 N. Main, 317 W. Mill, 311 S. Washington, 211 W. Mill and 221 W. Mill.