Dupri Issues Answer and Counterclaim in Lawsuit Commenced by SunTrust Bank
Producer, writer, entrepreneur Jermaine Dupri has filed his Answer and Counterclaims in connection with the lawsuit commenced recently by SunTrust Bank, according to a press release issued by his publicist. The counterclaims allege that the bank breached its contract with him, converted his funds to their own use and fraudulently rewrote the terms of his loan without his knowledge among other claims. The bank's Complaint alleges that Dupri is indebted to it for approximately $1.9 Million dollars representing the outstanding balance on a larger loan made in 2009 for nearly $5 Million.
In Dupri's Answer and Counterclaims, he details his course of dealings with SunTrust and it's executives in connection with his loan and the modifications of that loan in 2010. Specifically, the original loan provided that SunTrust would allocate certain portions of the royalties which it was to receive from EMI Music Publishing in repayment of the loan to satisfy Dupri's Federal and State income taxes. SunTrust Bank did not make such payments which resulted in tax liabilities being assessed against Dupri.
The Counterclaim reveals that in order to cover up its mishandling of Dupri's funds, SunTrust Bank executives restructured the loan in December 2010, removing the provision requiring them to make the tax payments. In good faith, and relying upon the trust and established a relationship that had existed with SunTrust over many years, Dupri executed a new loan agreement and related documents which modified the original 2009 loan to his detriment. The loan was restructured from a variable to a fixed payment arrangement, with payments unilaterally determined by SunTrust which were not based on realistic projections of Dupri's income. Dupri states in his Counterclaim that he was not provided an opportunity to have his legal and financial representatives review the documents prior to signature and that when he left the SunTrust offices after signing the new agreements, he was not provided with a set of the closing papers.
In his Answer, Dupri clearly details how the misrepresentation and breach of duties by SunTrust resulted in a commercial loan which was not in default at the time of the December 2010 signing being converted to a loan with unachievable payment terms of which he was unaware. Due to the fact that the loan was restructured from a variable to a higher fixed payment arrangement, the loan went into default and SunTrust acted without attempting to resolve this matter and filed an action against him. As a result of SunTrust's actions, Dupri is currently addressing tax assessments levied by the IRS and Georgia Department of Revenue and is forced to challenge SunTrust's attempt to foreclose on and seize his assets.
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