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Second lawsuit filed against Libby Lofts

by The Western News
| January 4, 2011 12:33 PM

The company that aimed to transform the

1917 former Libby High School building into condominiums is

involved in a second lawsuit with investors.

Chris and Emily Colson filed a

complaint in district court against Libby Lofts last week, alleging

that the company owes them $67,000 in principal and accruing

interest based on a contract they signed with the company’s sole

owner, Scott Curry, in November 2009.

The Colsons allege that Libby Lofts

failed to honor the contract, which indicated their original

investment of $60,000 plus 10 percent annual interest would be paid

in full by Oct. 1, 2010. They requested that the court order Libby

Lofts to pay the amount plus interest to date and attorney’s fees,

as laid out in the contract.

In related litigation, Curry filed a

lawsuit on behalf of Libby Lofts this past August, accusing three

investors – Ron Carter and William and Penni Riggles – of

sabotaging his efforts to raise money for the project. The

defendents countersued in September, alleging that Curry violated

their contracts by failing to disclose the financial condition of

the company and by diverting investment funds from the project to

himself.

Libby Lofts suffered a major setback in

May 2008 when its project manager and co-owner, Eric Berry, died in

a motorcycle crash. Renovations were stalled and investor interest

waned, Curry said, when the company was stuck in probate for about

a year.

The project has been altered from

condominiums for sale to senior apartments for rent, Curry

said.