EXTRA CONTENT: Local property development company loses lawsuits over land, Harley dealership

Read court files from CDG’s lawsuit against Harley Davidson dealership owner Scott Maddux.

Read court files from a related case by clicking here.

A local property development company, which at one time had plans of bringing a Harley-Davidson Motorcycle dealership and to south Corbin then sued the Tennessee owner of the dealership when the deal fell through, has had an avalanche of adverse legal rulings in recent months.

On July 9, Whitley Circuit Judge Dan Ballou plunged the final nail in the coffin of a lawsuit originally filed in 2007 by Commonwealth Development Group, LLC (CDG) against Tennessee Harley Davidson dealership owner Scott Maddux and his property acquisition company, Cat Head Properties, LLC.

The crux of the case centers around five acres of property in south Corbin, call Ridgeview Commons that Cat Head had planned to purchase a portion of in mid-2007 from CDG in order to build the 35,000 to 50,000 square foot dealership. The deal fell through after Maddux apparently decided to move the dealership to London, and both parties have been arguing over the fate of $150,000 in "good faith" money paid to CDG when a letter of intent was signed regarding the deal. Maddux and Cat Head claimed the money should have been returned and the case dropped because the letter was a non-binding agreement. CDG said the money should have been forfeited and accused Maddux of fraud and breach of contract.

In his latest ruling, Ballou refused to "vacate" a summary judgment in favor and Maddux and Cat Head Properties he made in May, which essentially threw out the last remaining vestiges of fraud claims against Maddux, and ordered that the $150,000 held in escrow be returned with interest. A judge issues a summary judgment when he feels that a plaintiff would be unable to provide "clear and convincing evidence" at trial to prove its case. Ballou sided with Maddux’s attorneys, who argued the "letter of intent" between Maddux and CDG "specifically states that any ‘negotiations’ would be ‘NON-BINDING’ upon the parties. The Letter of Intent evidences that fact that the parties specifically agreed that a written ‘Purchase Agreement’ would be necessary in order to bind the parties."

In its original lawsuit, CDG, which is owned by local businessmen A.J. Carr and Steve Brock, also accused another property development company, KELACO, of interfering with their deal in order to swipe the dealership and locate it in London.

On Oct. 2, 2007 Polecat Properties, LLC purchased 8.24 acres from KELACO, LLC in London off the Hal Rogers Parkway, near 84 Lumber, for $350,000. According to a deed filed in the Laurel County Clerk’s Officer, Polecat Properties is owned by Scott Maddux.

The land is part of a 21.73-acre tract owned by KELACO, a company whose officers include: Maurice Smith, Robert T. Walters, Lee Nelson Calebs, Kevin Carroll and Teddy P. Taylor.

Special Judge Jerry Winchester initially threw out that part of the case, but then reversed course and allowed CDG to files its claims against KELACO in Laurel Circuit Court. CDG has not actively prosecuted that case.

CDG and its owners are facing other legal hurdles as well.

In June, Whitley Circuit Judge Paul Braden ruled that Carr and Brock are to pay First Southern National Bank $4,362,292.69, plus attorney’s fees and interest. They received a loan from the bank to purchase the two tracts of property that make up Ridgeview Commons in 2007. They bought the land from Jim and Donna Vance, of Corbin, who initiated the lawsuit that led to the decision. Braden ordered that both parcels of property be sold at a Master Commissioner sale after being appraised.
Carr refused to comment in depth on either case, saying only that the latter decision is "different than it appears" and is a case of "everyone protecting their interests." He said CDG continues to market and attempt to sell parcels of land in

Ridgeview Commons and hopes to have an announcement of a sale in the near future. He referred all other questions to his attorney Bradley Moore, of Lexington.

Moore would only confirm the outcome of the cases, but would not comment further saying he did not have permission to discuss the cases publicly with his clients.