Litigation continues 3 months after case over equipment lease settles

David Yates Jun. 27, 2011, 10:15am

Parties in a case over unpaid lease equipment, which settled in March, were given two weeks by a local judge on Monday to settle their money issues.

In October 2008, McCown Paint and Supply of Texas filed a breach of contract complaint against Darrell Cunningham, owner of the Lumberton business Cunningham's Collision and Customs, alleging he failed to pay a monthly lease amount for equipment.

As previously reported, the case settled for an undisclosed amount on the date of their trial on March 14.

However, Cunningham has refused to honor the settlement agreement and pay McCown Paint, according to court records.

Because Cunningham has not paid, Judge Milton Shuffield, 136th District Court, granted McCown Paint summary judgment on June 13, prompting Cunningham to file a motion to reconsider judgment.

A hearing on the matter was held June 27.

A court official told the Southeast Texas Record that the judge gave the parties a two-week grace period to settle the money issue before making a final ruling.

McCown claims Cunningham agreed to pay a lease amount of $1,159.28 on a monthly basis until the end of the lease term.

Court records show McCown had the option to purchase the equipment for $1 at the end of the lease term. But Cunningham failed to make payments to McCown.

McCown is represented by Daniel D. Clayton of Beaumont.

Case No. D182-586

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