Plaza Towers owner seeks temporary order against OMB Bank to prevent foreclosure

Springfield Property LLC owner Marco Denis, who has been incarcerated for nearly seven months on gun, domestic assault and kidnapping charges, is seeking a temporary restraining order against OMB Bank in a petition filed last week in Greene County Circuit Court.

Denis and Springfield Property, which owns Plaza Towers, allege in the Jan. 28 petition that OMB Bank is attempting to foreclose on the 1736 E. Sunshine St. property, citing disputed mechanic's liens. The suit alleges that even though the liens are unresolved, Springfield Property has not missed any loan payments, and Denis' incarceration has made it difficult to defend Springfield Property's interests. The restraining order is seeking to temporarily prevent a foreclosure.

Despite the claims in the suit, attorneys for OMB Bank say the bank has not initiated foreclosure proceedings even though it has the right to do so.

The petition specifically points to an $883,976 mechanic's lien filed against Springfield Property by Base Construction & Management LLC, which served as general contractor for renovations to Plaza Towers. The petition states that mediation is scheduled Feb. 10, with arbitration expected to follow if mediation does not resolve the dispute. Springfield Property also is facing mechanic's liens from Doing Steel Fabrication LLC ($66,613) and Springfield Sun Control LLC ($41,143), according to court filings.

"Despite Springfield Property’s timely efforts to arbitrate and resolve the matter, OMB Bank has indicated its intent to proceed with foreclosure on the subject properties – chief among them the Plaza Towers – citing the existence of the disputed mechanic’s liens as grounds for acceleration under the loan documents," the petition states. "Springfield Property, through counsel, inquired whether OMB Bank would forego or delay foreclosure – even briefly – if Springfield Property satisfied the subcontractors’ liens and posted a bond to secure the Base lien, pending a final determination in arbitration.

"OMB Bank expressly rejected this proposal, stating that it does not wish to continue doing business with Springfield Property under any conditions."

Spencer Fane LLP partner Jason Smith provided a statement on behalf of his client, OMB Bank.

"OMB Bank disputes the allegations made by Springfield Property LLC and looks forward to the court hearing the facts," the statement reads.

Smith additionally provided a copy of OMB Bank's suggestions in opposition filed in Greene County Circuit Court in response to the request for a temporary restraining order.

The motion alleges that despite Denis and Springfield Property defaulting on three loans with a collective remaining balance exceeding $15 million, OMB Bank has not initiated foreclosure proceedings. The collective original principal sum of the loans totaled $16.4 million, according to the motion.

The motion indicates that a 2020 deed of trust between OMB Bank and Springfield Property states, in part, that Denis' company "would not permit or suffer any mechanic’s, laborer’s, materialman’s statutory lien or other lien on the subject property other than for taxes not yet due."

"The petition inadvertently affirms and acknowledges OMB’s legal entitlement to pursue foreclosure of the at-issue property by admitting (under oath) plaintiffs’ default under the at-issue deeds of trust, thus preventing plaintiffs from demonstrating any potential or likelihood of success in any future claims pertaining to the foreclosure contemplated by the petition," the motion states. "While it appears Springfield Property and Marco Denis were aware of the mechanic’s liens, neither notified OMB about them and OMB eventually found out. Springfield Property thereafter failed to secure a discharge of the mechanic’s liens, and likewise failed to take any of the alternate steps to provide OMB protection against the mechanic’s liens as required under the 2020 deed of trust."

OMB legal counsel last year sent multiple letters to Springfield Property notifying them of loan defaults, according to the motion.

"While OMB has the right at this time to proceed with a foreclosure under the 2020 deed of trust and the 2022 deed of trust, and to otherwise pursue all of its legal remedies, as of the filing of these suggestions, OMB has neither initiated any legal action against plaintiffs to collect the balance due on the loans, nor initiated any foreclosure proceedings," the motion reads.

In August, Denis was indicted by a federal grand jury for allegedly possessing eight firearms illegally and lying about his criminal record when buying two of the weapons, according to past reporting. Denis was arrested and jailed in mid-July amid Greene County Circuit Court charges of domestic assault and kidnapping.

Denis and Springfield Property are represented in the petition by Chad G. Mann of the Law Office of Chad G. Mann LLC.

Dan Curry, an attorney with Kansas City law firm Brown, Curry & Duggan LLC, who also represents the Missouri Press Association, said a temporary restraining order is a routine request in cases in which one party believes there could be irreparable damage done during the pendency of a lawsuit.

“While you’re arguing over who’s got what contractual rights in court, that could take a while. It could take more than a year,” Curry said for an SBJ story last month. “And in the meantime, if there’s irreparable harm being done or the chance of that, you can have a temporary restraining order to state, ‘Hey, let’s freeze things in place or let’s force them to stop taking this particular action while we’re trying to work out this dispute.’ That’s essentially what’s going on.”