Banks pulled in to Jim Stafford's financial affairs

Last edited 5:03 p.m., Sept. 2, 2014

The laughter is over and the court cases have begun for former Branson entertainer Jim Stafford.

Though the comedian has no doubt left his mark on the city of Branson after 20 years performing on 76 Country Boulevard, Stafford has become a party in two Taney County court cases each involving his wife and their business following their theater’s closure last year.

On Aug. 6, Metropolitan National Bank filed suit against Jim and Ann Stafford and their company Strats Inc. for stopping payments on loans they took out in 2008 and 2011 for their now-vacant Branson theater. Three months earlier, Liberty Bank filed suit against Jim Stafford and Strats to settle a money dispute between the entertainer and his wife of more than two decades.

The May filing by Liberty is an interpleader action that named Jim Stafford and Strats as defendants.

“It’s not a common type of case, but whenever a third party has money that they have no claim to, but two or more other parties lay claim to it, and (the third party) doesn’t want to be the one to make a decision as to who has ownership of it, they deposit it with the court in an interpleader suit and let the court decide who has the legitimate claim to the money,” said Rudy Arambulo, an attorney with Tri-Lakes Law Firm LLC in Branson which represents Jim Stafford.

Arambulo said closure of the Jim Stafford Theatre last year was one factor in the money dispute between the couple he confirmed now live in different states. The Metropolitan National suit lists Ann Stafford in Hollister, while Jim’s address of record is in Winterhaven, Fla.

“The Jim Stafford show is no longer going on in Branson, and it ultimately stems from that. As you probably know, with a lot of things like that, there are different issues that turn up and this is just one of them,” Arambulo said.  

According to the case filing, Liberty placed the bank account’s roughly $24,860 balance on an administrative hold Dec. 2 after its representatives became aware of a possible dispute over the funds.

“The respective claims by the defendants against the plaintiff to the disputed account funds are conflicting, constitute a real and substantial dispute, and expose the plaintiff to multiple liability for which the plaintiff has no adequate remedy at law,” the filing reads.

Liberty Bank also asks that the parties pay “reasonable costs including attorney fees” for the action. Arambulo said he expects a judgment on the Liberty money dispute within two months.

Arambulo, who also represents Jim Stafford in the Metropolitan case, declined to comment on the status of the Staffords’ marriage, but said he understands they haven’t filed for divorce. Arambulo also declined to comment on the Metropolitan suit, noting they had not responded to pleadings by press time.
   
Metropolitan claims the Staffords owe the bank $1.6 million, plus 9 percent interest, on a $3.2 million loan taken out in March 2011, and nearly $90,000, as well as 9 percent interest, on a second $3 million loan issued in August 2008. The lawsuit also calls on the Staffords to pay $75,000 in attorneys’ fees, according to court documents.

Rod Nichols, an attorney with Carnahan, Evans, Cantwell & Brown P.C. in Springfield who handles complex commercial loan transactions, said it is common for lenders to seek a declaratory judgment on loans gone bad.

Typically, when a loan goes into default, Nichols said the lender has to decide whether it will take action against any collateral used to secure a loan, assuming arrangements with the borrower can’t be made.

“It would only be after attempts at an amicable resolution have failed would the bank then move forward with a lawsuit or some attempt to realize on their collateral,” said Nichols, a former chairman of the Bank Counsel Section of the Missouri Bankers Association, adding financial institutions are not required to pursue collateral before filing suit. “In the case of real estate, it will be sold in a nonjudicial foreclosure sale on the courthouse steps. The bid amount will be credited against the loan, and if there is a balance remaining, then the next step would be to file suit against the borrower and any guarantors.”

Metropolitan purchased the theater in May as part of a foreclosure sale, according to county records. Metropolitan bank officials declined to comment on the case.[[In-content Ad]]