Gene Chambers Sues Park Square Enterprises and RLI Insurance Company For Alleged Breach of Contract
January 10, 2022, Middle District of Florida – Gene Chambers as a Chapter 7 Trustee for Debtor JEL Site Development, Inc., brings a lawsuit against Park Square Enterprises, LLC and RLI Insurance Company for alleged breach of contract, unjust enrichment, and to foreclose a lien. Gene Chambers also argues that pursuant to §§ 502(d) & 547, Park Square’s proof of claim should be disallowed unless it returns the alleged transfers to the Debtor’s bankruptcy estate.
Specifically, Gene Chambers argues that Park Square allegedly breached a site development contract by failing to make payment and wrongfully terminating the Debtor without requisite notice. Gene Chambers further contends that RLI Insurance Company is a compensated surety on lien transfer bonds posted for the benefit of Park Square. Adding further, Gene Chamber alleges that JEL’s timely filed lien was transferred to the bond of surety pursuant to section 713.24, Florida Statutes, and the Debtor perfected its rights timely seeking foreclosure of its lien. The complaint further contends that RLI allegedly failed and refused to make payment to the Debtor but participated in the disbursement of funds allegedly payable to the Debtor to purported lienors that allegedly did not have valid and supported claims against RLI or Park Square.
Accordingly, Gene Chambers seeks judgment against RLI for the amount of its lien plus prejudgment interest and costs. Gene Chambers also seeks a judgment against Park Square, alleging that Park Square received site work improvements for the development of its subdivision and did not make payment to Debtor or anyone else. Thus, the Trustee argues that it is inequitable to permit Park Square to benefit unjustly from its refusal to make payment. The Trustee accordingly, seeks entry of judgment against Park Square for damages in the amount it was unjustly enriched, prejudgment interest, and costs.
In re JEL Site Development, Inc., Case 6:22-ap-00003-LVV