Max Schramel Sep. 23, 2014, 1:53pm


NEW ORLEANS – A local construction firm is being sued for an allegedly fraudulent check written  to a construction goods supplier for a project undertaken in New Orleans.

Resteel Supply Co. filed suit against Bailey Construction and Development LLC  and Bailey Construction in the Orleans Parish Civil District Court on July 31.

Resteel disputes the amount of $723.76 is due as a result of construction and improvements on a property located at 1718 Elysian Fields in New Orleans. Bailey, is allegedly responsible for the aforementioned charge and the debt stems from an open account for fabricated rebar sold to Bailey by Resteel.

Bailey purportedly attempted to pay the sum back by issuing a check number 13481 on a Regions Bank checking account entitled “Bailey Construction & Development LLC” payable to “Resteel Supply Corporation” dated May 22. However, the check was allegedly returned to Resteel, following negotiations to accept it, due to non-sufficient funds.

On July 7 a copy of Bailey’s NSF check was mailed to Bailey via certified mail. Although this letter remained unclaimed, a copy of the United States Postal Service tracking printout evidences a notification that the letter was to be picked-up.

More than fifteen days have allegedly gone by since the delivery of the NSF check, including failure to pay the aforementioned amounts due. As a result, La. R.S. 9:2782 stipulates Bailey is liable to Resteel for penalties of twice the amount of the NSF check, which totals $1,447.52, including the prosecution and collection of this open account.

The plaintiff is represented by Jay Corenswet of Milling Benson Woodward LLP.

The case has been assigned to Div. A Judge Tiffany G. Chase.

Case no. 2014-07574.

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