NEW ORLEANS – A local corporation is suing a contractor over a loan that was allegedly never repaid.

KMT Painting and Decorating LLC filed suit against Southern Outfitters of North Louisiana in the Orleans Parish Civil District Court.

KMT claims that it had an oral agreement with Southern whereby KMT would loan Southern $20,000 and Southern would repay KMT. On Aug. 27, 2012 Southern issued a check to KMT for $20,000. KMT deposited the check into their Capitol One account. On Jan. 28, 2013, JP Morgan Chase, the drawee bank, dishonored the check for insufficient funds. On Oct. 28, 2013 plaintiff made a written demand through certified mail for payment. On Nov. 27, 2013 the certified mail was returned to sender as unclaimed.

Plaintiff is seeking twice the amount of the check plus a service charge of 5 percent. Otherwise, KMT alleges that Southern breached its obligation to repay KMT the $20,000 and therefore Southern is liable to KMT for all damages caused or arising from Southern’s breach.

KMT is represented by Lloyd N. Shields, Andrew G. Vicknair, Michael S. Blackwell of Shields Mott Lund LLP.

The case has been assigned to Division A Judge Tiffany Chase.

Case no. 2013-11313.

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