Crossville Chronicle, Crossville, TN

Area News

September 29, 2011

Tansi POA files suit over sewer system loan

Suit filed against TWMI, TSUD

CROSSVILLE — The Lake Tansi Village Property Owners Association has filed a lawsuit seeking a default judgement against Tansi Waste Management Inc. for nonpayment of loans totaling more than $1.3 million and asks that the transfer of TWMI assets to the Tansi Sewer Utility District be voided.

The loans were made to finance construction of a sewer system in Lake Tansi to serve POA amenities, businesses and various homes.

Dave Sutton, general manager of the Tansi POA, said, “Having these outstanding loans delays needed capital maintenance items and puts a squeeze on our ability to provide the amenities we have in the past.”

The suit was filed Sept. 23 in Cumberland County Chancery Court by Gullett, Sanford, Robinson & Martin, PLLC, attorneys for the POA.

According to the suit, the POA allowed TWMI to use a line of credit established by the POA at First National Bank of Tennessee. Promissory notes were issued by TWMI that included the principal and interest rate of 6.25 percent from the date of the loan. All notes were titled “due on demand promissory note.” There were 11 such promissory notes issued from Feb. 17, 2009 through June 15, 2010, each signed by Claude “Duke” Coyne, president of TWMI and former general manager of TSUD. He retired from the sewer district in November 2010.

Only $187,438.15 has been paid back to the POA, the lawsuit states. Interest continues to accrue on the outstanding balance.

In May 2011, the POA made a demand for payment from TWMI, but no payment has been received at the time the lawsuit was filed and the POA has had additional costs and attorneys fees trying to collect on the loans.

Herb Pallatt, chairman of the TSUD board and a director for TWMI, said he had not yet seen the lawsuit and could not comment at this time.

Ron Alt, president of TWMI, said he also has not seen a copy of the lawsuit and could not comment at this time.

The lawsuit seeks TWMI be declared to have defaulted and ordered to pay the POA for outstanding loans, as well as the costs of collection, including reasonable attorney fees.

It also asks the court declare the transfer of TWMI assets, primarily the sewer collection lines and treatment facility, to TSUD, void. The sewer system was TWMI’s primary asset and the loans to the POA its primary liability.

TSUD has made no payment on the loans. When TSUD accepted the assets of TWMI, it also agreed to pay the POA for the outstanding TWMI notes.

According to the suit, neither TSUD or TWMI had cash on hand to pay the notes at the time of the transfer. TSUD conditioned its repayment of the notes on receiving proceeds from the issuance of public bonds and that the bonds would allow the proceeds to pay the POA.

“Such ‘consideration’ was not reasonably equivalent to the value of the Sewer System transferred by TWMI to TSUD,” the suit states.

The lawsuit asks the transfer of the sewer system by TWMI to TSUD fraudulent, as well as the transfer of any licenses, approvals or permits and attachment issued against the sewer system and any licenses, approvals or permits TWMI may have transferred to TSUD.

1
Text Only
Area News
  • Ayers2.jpg County OKs resolution for CMC/Covenant refinance deal

    Cumberland County commissioners passed a resolution Monday evening giving its approval for Covenant Health to refund its bonds to refinance $40 million for Cumberland Medical Center.
    The request was made by Covenant Health, a Tennessee nonprofit corporation which now operates Cumberland Medical Center.

    July 24, 2014 1 Photo

  • Plea includes ban from all Wal-Mart stores

    A Crossville man who was facing two counts of theft of more than $500, relating to shoplifting incidents at the Crossville Wal-mart, has entered a guilty plea, and part of his sentence is being banned from all Wal-Mart stores.

    July 24, 2014

  • Forgery charges net six months in jail

    A Crossville woman already on parole because of a felony theft conviction has pleaded guilty to two felony counts relating to forged checks and received a split sentence with six months to be serve in jail.

    July 24, 2014

  • Unfunded mandates a challenge for schools

    Director of Schools Donald Andrews has expressed local concerns regarding unfunded state mandates in education to Gov. Bill Haslam in an informal meeting between the governor and area administrators and teachers.

    July 24, 2014

  • IMG_3745.jpg Vote early to avoid delays

    Cumberland County Election Administrator Suzanne Smith is encouraging Cumberland County voters to take advantage of the early voting period, which continues through Aug. 2 at the Election Commission Office at 2 S. Main St.

    July 24, 2014 1 Photo

  • state park boat dock.jpg Showcase of driving tours set today at Cumberland Mountain

    Discover the hidden gems of The Promised Land and Pie in the Sky Trails during the showcase 11 a.m. to 2 p.m. Friday, at Cumberland Mountain State Park. This special event is free and open to the public.

    July 24, 2014 1 Photo

  • waterfest2013.jpg Get on the water this weekend

    Volunteers from the Tennessee Scenic Rivers Association offer basic instruction for kayakers at the 2013 Waterfest. This year’s event is set for Saturday at Meadow Park Lake from 2 to 8 p.m. There will be activities for the whole family, with food, exhibits, kids games, live music and water activities, with TSRA instructors offering rides on canoes, kayaks and sit-on-top kayaks. There will also be pontoon tours of Meadow Park Lake from 3 to 7 p.m., offering a chance to look for wildlife. The University of Tennessee Concrete Canoe Team will be demonstrating their craft, as well, at 2:30 p.m.

    July 23, 2014 1 Photo 1 Link

  • haslam 3.jpg Haslam makes stop in county

    Gov. Bill Haslam stopped by Cumberland County for breakfast Tuesday morning, encouraging everyone to get out and vote during the early voting period.

    July 23, 2014 1 Photo

  • Blood shortage looming

    The American Red Cross is facing a looming blood shortage, leading to an urgent need for donors of all blood types to roll up a sleeve and give.

    July 22, 2014

  • Judge ponders why stolen silver wasn't recovered

    A Crossville area man who entered into a sentencing agreement relating to the theft of silverware that was later sold to a local jewelry shop found himself with an unlikely ally — the judge.

    July 22, 2014

Marketplace Marquee
Parade
Must Read
Section Teases
Seasonal Content
AP Video
Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase Obama Seeks Limits on US Company Mergers Abroad Large Family to Share NJ Lottery Winnings U.S. Flights to Israel Resume After Ban Lifted Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 Raw: Deadly Storm Hits Virginia Campground Death Penalty Expert: 'This is a Turning Point' Raw: MH17 Victim's Bodies Arrive in Netherlands
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Weather Radar
2014 Readers' Choice
Graduation 2014