LITTLE ROCK, Ark. (Legal Newsline) - Arkansas Attorney General Dustin McDaniel filed a motion for default judgment on Wednesday against a Massachusetts-based real estate company that allegedly breached a contract with an Arkansas retirement group.
In October 2012, National Timber Partners LLC entered into a contract with the Arkansas Public Employees Retirement System. In the contract, National Timber agreed to buy APERS' interest in the NTP Timber Fund I LP in three installments for a total purchase price of $110 million.
In a lawsuit filed in September, McDaniel alleged National Timber failed to pay all of the second installment due in June and failed to pay the third and final installment on December 31. National Timber allegedly stated it would be unlikely to meet its obligation to pay the third installment.
"It is always troubling when a company would disregard a contract with the state, but even more so when it involves money intended to support our public employee retirement system," McDaniel said. "We have asked the court to require National Timber to immediately pay its past-due debt to APERS, yet the company has continued to seek to avoid paying what it owes by delaying court proceedings."
McDaniel filed the motion for default judgment because National Timber allegedly failed to respond to his lawsuit. APERS twice agreed to permit the defendant to extend the deadline for responding to the lawsuit. The last deadline to file a response to the suit was December 19. National Timber allegedly failed to meet the deadline.
National Timber allegedly owes APERS a total of $14,289,297.
McDaniel's motion requests that the court enter a default judgment against National Timber and order the company to pay its full obligation, pre- and post-judgment interest and attorney costs.