The Village of Menomonee Falls is seeking summary judgments against the last remaining original owner of the Radisson Hotel, and Lodging Investors of Menomonee Falls, seeking payment from owners on the $14.8 million bill from the hotel loan.
The village on Monday filled a motion for a summary judgment against part owner James Heyden, Constance O’Mara-Heyden, and L.A.C. Concepts, Inc., which is a company that extended a second mortgage on the hotel. The village also filed a summary judgement against Falls Lodging Investors, which was the original ownership group.
The total owed does not include fees and interest, but does include protective advances made by the village. The total was last tallied in March. A second summary judgement was filed against Heyden due to his counterclaims against the village.
The pending case, which was filed in Nov. 2011 when the village appointed a receivership attorney, also includes a large group of subcontractors, who are not included in the village’s motion for a summary judgment.
A summary judgment is an attempt to avoid the time and expense involved with a trial, which would mean there are no factual issues or questions of law in the case to be tried. Village Financial Director Jason Kaczmarek, and attorney Brian Sammons on Monday both filed affidavits of support for the summary judgments, according to Waukesha County Circuit Court records.
In its motion against Heyden, the village claims Heyden signed a guaranty when the loan was issued, and is liable for amounts now owed to the village. Since the guaranty is considered unconditional, the village argues there is no question regarding the law and a trial isn’t necessary.
According the summary motion, the village says that it under no obligation has provided ample opportunity and devoted time and financial resources to achieve a negotiated resolution. However, the village says Heyden has failed to take advantage of the village’s offers, and he has instead “concocted alleged defenses and counterclaims” alleging the guaranty was unfair. The village says Heyden’s contention has no basis grounded in law.
The original loan was issued to the five-member ownership group, Lodging Investors of Menomonee Falls. Heyden says he wasn’t a manger in the company and didn’t participate in the creation of the loan agreement.
He also argues that the village didn’t do due diligence in its loan issue, mismanaged the hotel through the receiver, and the guaranty unfairly shovels the burden of liability onto him. He also claimed the village continued to pay former part owner Dean Grosskopf despite his opposition.
The village has asked the court to dismiss Heyden’s counterclaim.
As it stands, the case is set for a pretrial on Sept. 26. Read more about the Radisson Hotel on Patch.