Solution Is Reached By Bank, GPatti
The attorney representing GPatti Inc. says the lawsuit filed over the former Jamestown Brewing Company is likely to be withdrawn within 60 days.
Evans Bank had filed a motion for summary judgment in Chautauqua County Supreme Court asking for $744,556.72 from GPatti Inc. the bank says it is owed on a $1,382,360 loan.
“We’ve been able to reach what I would call an amicable solution, I would say, quite quickly,” said Andrew Miller, a partner with Webster Szanyi LLP in Buffalo who is representing GPatti Inc. in the case.
Miller said GPatti did not misuse any of the grant money that was used as security in for the $1.382 million loan the Jamestown developer received from Evans Bank. One of the claims in the court filing was a claim that grant money used as security for the loan was spent without providing Evans Bank notice that the grant money had been received or and without getting the bank’s consent before using the grant money.
Evans claims GPatti was required to seek approval from the bank before using the money to pay vendors, a contention Miller said Patti disagrees with.
A resolution to the lawsuit was reached on Tuesday between GPatti Inc. and Evans Bank regarding the loan and repayment.
“It was somewhat routine,” Miller said. “There wasn’t anything out of the ordinary here. There was frankly a loan that had matured. We were seeking an extension of time on payment that initially wasn’t granted and now we’ve reached a resolution with the bank that will have the whole matter resolved in about 60 days.”
Last week’s filing in state Supreme Court in Chautauqua County had been the third filing related to the former W.T. Grant Building on Third Street, with Patti emerging from the legal battles unscathed.
The owners of Jamestown Brewing Company filed a lawsuit in 2019 against GPatti Inc. alleging the brewing company owners weren’t fully notified about environmental issues at the site of the W.T. Grant building that prompted months of delays opening the business. Jamestown Brewing’s owners asked for at least $1 million in damages as well as compensatory damages, interest, attorney’s fees and other costs, but much of that lawsuit was later dismissed.
Then, in 2020, GPatti Inc. filed eviction proceedings against Jamestown Brewing Company alleging thousands of dollars in unpaid rent and breach of contract. The judge ruled in favor of GPatti, and the site has been vacant since.