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Hotel Suit Update: Village Seeking Summary Judgments in Case

The village has filed summary judgements against Radisson Hotel owners seeking the $14.8 million owed from its construction loan.

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.

Heyden disagrees. 

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. 

Todd April 18, 2013 at 08:30 PM
Again the question is, who got us into this mess? Who was the person that sat on Board with his 2 (according to K Arthur) Masters Degrees in Urban Planning that advised the non Urban Planning types that this was the greatest investment since the latex condom? I still say the buck stops at Mr. Fitzgerald's door step and he should be held accountable for this tax loss. And before K Arthur comes out and says this isn't a loss Arthur needs to tell me how you can turn $18 million for an expected $3-$5 million dollar business into a profit. I remember a coined phrase "Voodoo Math" from one of the presidential elections. All I know if I wrote a check from my employer's account for $18 million and anticipate taking $13-$15 million dollar loss, my employer would take my diploma off the wall and go to the mens room and put it to better use! And we are still paying fees to a law firm for administering and legal work. How much does that run US each month? I am getting light-headed from the bleeding of my taxes. Thanks Fitz, we are all ready to back you on your next expensive adventure.
W . Benz April 18, 2013 at 10:34 PM
Davis and Slinker didn't spend taxpayer $$$$ like this when they were Trustees and I don't think even Papa Greco would not been this stupid. This all started when they hired Fitz as Village Mangt , just check on line when he was @ woodland park co. and the crap that went on there -- It's his M.O.
Richard April 18, 2013 at 11:24 PM
Colorado, Woodland Park, hmm, a liberal progressive state, spend, spend, spend, all logical to me!!!
Former Resident April 19, 2013 at 01:23 AM
Fire Fly, you make a great observation. I certainly wasn't aware Fitzgerald had a penchant for playing with "house money" but it sure looks like he was a pro out in Woodland Park. I'd urge anyone to read up on the Village Manager's past "achievements"...
W . Benz April 21, 2013 at 01:47 PM
Fitz was pushing a Dinosaur museum in Woodland Park Co ... I kid you not !! The people Question were the hell this Guy was coming from , now we got this brain child with 2 masters degrees . When does Toppers Pizza open in that landmark Bld ? On Main st. . Looks like another empty space using taxpayer $$$

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