Springfield Property dismisses request for temporary order against OMB Bank

Springfield Property LLC has voluntarily dismissed a court request for a temporary restraining order against OMB Bank, court records show.

Through Chad G. Mann of the Law Office of Chad G. Mann LLC, Springfield Property and its owner, Marco Denis, on Feb. 11 filed a notice of dismissal without prejudice in Greene County Circuit Court. The Jan. 28 petition sought to temporarily prevent a foreclosure of Springfield Property's Plaza Towers building, among other properties, and alleged that OMB Bank was pursuing the action on the basis of unresolved mechanic's liens against the 1736 E. Sunshine St. property.

“Initially, plaintiff understood that OMB Bank would imminently pursue foreclosure against the subject property," the notice of dismissal reads. "However, OMB Bank’s decision not to proceed with foreclosure, at least as of the time of this filing, appears to reflect a willingness to forego immediate action – thus likely reducing any imminent threat and creating an environment conducive to dialogue and potential resolution.

"Given OMB Bank’s current posture and the seeming absence of immediate foreclosure action, the urgency that precipitated the initial filing appears to have significantly lessened, justifying the voluntary dismissal at this time."

The court filing indicates that by dismissing without prejudice, Springfield Property "preserves the ability to refile and protect its interests should circumstances change or if any renewed threat of foreclosure arises."

Rod Nichols, partner at Spencer Fane LLP, which is representing OMB Bank, provided a statement to Springfield Business Journal following the notice of dismissal.

"OMB Bank will not comment on its future intentions, but it reserves all of its legal rights and remedies against Springfield Property LLC and Marco Denis," the statement reads. "In the event a foreclosure is initiated, a notice of trustee’s sale will be published of record setting forth the date, time and location of such sale, which will be open to the public."

Mann, attorney for Springfield Property and Denis, said via email that he was encouraged by Feb. 10 mediation proceedings related to an $883,976 mechanic's lien filed against Springfield Property by Base Construction & Management LLC, the general contractor for recent renovations to Plaza Towers. The petition filed last month by Springfield Property pointed to the Base Construction mechanic's lien and mediation and arbitration efforts underway.

"Notably, a significant portion of the claims forming the foundation of Base’s mechanic’s lien have already been paid. This raises substantial questions about the validity of the lien itself and suggests that much of the forthcoming legal effort will center on verifying its accuracy – rather than on any imminent foreclosure proceedings," Mann said via email. "OMB Bank had the opportunity to hear these concerns directly from the mediator, retired Judge [Michael] Cordonnier, during mediation. As a neutral third party, the mediator's candid assessment of these lien issues appeared to resonate with OMB. Given these developments, I’d say the likelihood of foreclosure is far from certain."

Attorneys representing Base Construction in the mechanic's lien case could not be reached immediately for comment by deadline.

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.

In response to the petition seeking the temporary restraining order last month, OMB Bank's attorneys said the bank has not initiated foreclosure proceedings even though it has the right to do so. A motion filed by OMB Bank's legal representation stated 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."

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

The status of Plaza Towers and other properties owned by Springfield Property have come into question amid the mechanic's liens and the incarceration of Denis last year on gun, domestic assault and kidnapping charges, according to past reporting.