Carlo's owners sued over loan from city six years after restaurant closing

David Yates Oct. 10, 2013, 11:23am

The city of Beaumont has filed a motion for default judgment in a suit alleging a restaurant failed to repay more than $40,000 in money it borrowed from the city.

As previously reported, the city filed a lawsuit Feb. 13 in Jefferson County District Court against Epicurean Empire, doing business as Carlo’s Italian and Greek Cuisine, Nicholas A. Sartori and Jacques R. Gagne. 

Court records show the city filed its motion July 16, asserting the defendants have failed to answer the suit.

Beaumont alleges it lent $50,000 to Epricurean on Sept. 10, 1997. In exchange, Epicurean agreed to repay the principal, plus 6.5 percent interest rate over a period of 180 months, according to the complaint.

Although Epicurean made some of the payments required under the terms of the promissory note, it eventually defaulted on the loan, the suit states. Carlo's, located on Calder Avenue in Beaumont's Old Town, closed in September 2007 after 40 years in business.

“As of February 7, 2013, Epicurean Empire had defaulted under the terms of the promissory note and, after adjusting for all offsets, payments and credits, owed the city $30,440.76 in principal and $11,389.42 in interest for a total of $41,830.18 under the promissory note,” the complaint says.

The city is asking the court to grant it’s motion and award it the $41,830.18 owed, plus interest and attorney’s fees.

In addition to Epricurean Empire, Beaumont names Sartori and Gagne as defendants, saying they promised to repay the money if Epricurean defaulted on the note. However, they have failed to do so, according to the complaint.

Beaumont alleges breach of contract against the defendants.

First Assistant City Attorney Quentin D. Price of Beaumont represents the city.

Judge Donald Floyd, 172nd District Court, is assigned to the case.

Case No. E193-937

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