IN CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS DIVISION. v. CASE NO. COMPLAINT

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1 ELECTRONICALLY FILED Pulaski County Circuit Court Larry Crane, Circuit/County Clerk 2018-May-04 11:39:22 60CV C06D16 : 5 Pages IN CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS DIVISION CENTENNIAL BANK PLAINTIFF v. CASE NO. JEREMY Y. HUTCHINSON DEFENDANT COMPLAINT COMES NOW, Plaintiff, Centennial Bank, by and through its counsel, Barber Law Firm, PLLC, and for its Complaint, states: 1. Plaintiff Centennial Bank ( Centennial ) is an Arkansas state chartered bank properly organized, authorized, in good standing, and doing business in the State of Arkansas, with its principal offices in Faulkner County, Arkansas, and branch offices in Pulaski County, Arkansas. 2. Jeremy Y. Hutchinson is an individual residing in Pulaski County, Arkansas. 3. This is an action based upon the Defendants default in payment according to the terms and conditions of a certain Promissory Note and other loan documents related to the Promissory Note. Jurisdiction and venue are based in this Court according to Arkansas law. 4. On or about April 22, 2011, Defendant executed a promissory note borrowing funds from and agreeing to be liable for the payment to Centennial of the debt set forth in said Note in the original principal amount of FIFTY THOUSAND NO/100 DOLLARS ($50,000.00) (the Note ). A true and correct copy of the Note is attached hereto as Exhibit A, with said loan being reflected on Plaintiff s books and records as Loan No (the Loan ). 5. Centennial Bank and Defendant agreed to the terms and conditions of a Change in Terms Agreement, dated April 22, 2012, that certain Change in Terms Agreement, dated April 22, 1

2 2013, that certain Change in Terms Agreement, dated October 22, 2013, that certain Change in Terms Agreement, dated October 15, 2015, and that certain Change in Terms Agreement, dated October 22, Each Change in Terms Agreement is attached as a portion of Exhibit A attached hereto. 6. Under the terms of the final Change in Terms Agreement, the maturity date of the Loan was extended to November 5, 2017, with all principal and accrued interest due on said maturity date unless earlier demanded by Centennial Bank. 7. Centennial Bank and Defendant later agreed to the terms and conditions of a Forbearance Agreement, dated February 5, Thereunder, the maturity date of the Loan was extended to October 1, 2018, and Defendant agreed to make eight (8) consecutive monthly payments in the amount of $1,000.00, with the first such payment being due upon execution and seven (7) monthly payments thereafter due on the first day of each month. See Exhibit B attached hereto. 8. An Event of Default listed on the face of the Note includes, Borrower fails to make any payment when due under this Note. Exhibit A, p Further, the Forbearance Agreement provided that Defendant s failure to remit the required payment within five (5) days of the due date constitutes a breach of the Forbearance Agreement. Exhibit B, p Further, as a condition of the Forbearance Agreement, Defendant issued Centennial Bank a Consent Judgment for entry with this Honorable Court should Defendant default on his payment obligations under the Forbearance Agreement. Exhibit B, 3, 3(d). 11. Upon the occurrence of an Event of Default, the Note provides that the interest rate on the Note shall increase to SEVENTEEN AND NO/100 PERECENT (17.00%). Exhibit A. 2

3 12. The Note further provides that Centennial may declare the entire unpaid balance under the Note and all accrued unpaid interest immediately due upon the happening of an Event of Default. Exhibit A. 13. Defendant has failed to make timely payments of the principal and interest payment due and payable under the Note and Forbearance Agreement since April 6, Following demand, Defendant failed to cure his default in the satisfaction of the terms and conditions set forth in the Note. 14. The Note states that all principal and unpaid interest, fees and expenses are due and payable upon demand by Centennial. Exhibit A. 15. Defendant has failed to make timely payment of the full amounts due and payable under the Note. 16. Pursuant to the terms of the Note, Centennial Bank has accelerated all amounts which are due and owing under the Note. 17. As of May 3, 2018, Defendant is in default as to the following amounts related to the Note: THIRTY THOUSAND THIRTY-SEVEN AND 69/100 DOLLARS ($30,037.69), plus interest and late fees which continue to accrue on the amount due through the date of any judgment and payment thereof. The Note provides that Centennial Bank may recover its costs, expenses and fees, including attorney s fees, incurred in the pursuit of this collection action. See Exhibit A. 18. Centennial Bank attaches the Affidavit of Account of Theresa Stillman in support of the allegations stated herein. See Exhibit C attached hereto. COUNT I: BREACH OF CONTRACT 3

4 19. Centennial Bank hereby restates and incorporates the statements and allegations set forth in Paragraphs 1 through 18 above. 20. On or about April 22, 2011, Defendant issued a Promissory Note to Centennial Plaintiff in the original principal amount of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00). See Exhibit A attached hereto. 21. By executing said Note, Defendant promised to repay Centennial Bank amounts owed including the principal amount of $50,000.00, plus interest, late fees, expenses and any costs associated therewith. 22. Defendant defaulted on his payment and performance obligations according to the terms and conditions of the Note. 23. Demand for payment and performance under the Note was been made upon Defendant. 24. Defendant has failed and refused to repay the amounts he promised to pay Centennial Bank under the Note. Defendant s failure to make payment according to the terms and conditions of the Note constitutes a breach of the terms and conditions of the Note, including the Forbearance Agreement. 25. By not receiving the payments under the Note from Defendant as promised, Centennial Bank has suffered harm. 26. As of May 3, 2018, Defendant s breach of the repayment obligations set forth in the Note has caused Centennial Bank damages in an amount in excess of THIRTY THOUSAND THIRTY-SEVEN AND 69/100 DOLLARS ($30,037.69), plus interest continuing to accrue on a daily basis, plus Centennial Bank s costs and expenses incurred in being forced to file this action, 4

5 and a reasonable attorney s fee. 27. Centennial Bank is entitled to an award of its reasonable attorney s fees according to the plain language of the Note and the Security Agreement as well as pursuant to Arkansas Code Annotated Further, pursuant to the terms of the Forbearance Agreement, Centennial Bank is entitled to the entry of the Consent Judgement attached as Exhibit B to the Forbearance Agreement. 29. All conditions precedent to the enforcement of the Note and Forbearance Agreement have been satisfied. 30. Centennial Bank reserves the right to amend this pleading in order to make modifications of the allegations contained herein or include additional allegations as may be appropriate, pending further discovery and final determination of damages sustained. WHEREFORE, Centennial Bank prays that its Complaint be granted and that it be awarded the relief set forth above against Defendant Jeremy Y. Hutchinson, and for all other just and proper relief to which it may be entitled. Respectfully submitted, BARBER LAW FIRM, PLLC 425 West Capitol Avenue, Suite 3400 Little Rock, AR Telephone: (501) Facsimile: (501) mhodge@barberlawfirm.com /s/ Mark W. Hodge Mark W. Hodge, AR BAR COUNSEL FOR PLAINTIFF CENTENNIAL BANK 5