MCDANIEL SECURES DEFAULT JUDGMENT AGAINST MASSACHUSETTS COMPANY

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January 21, 2014

LITTLE ROCK – A Pulaski County judge ruled today that a Massachusetts real estate company had breached its contract with the Arkansas Public Employees Retirement System (APERS) and ordered the company to immediately pay APERS the remaining contract amount, Attorney General Dustin McDaniel announced.
 
Circuit Judge Tim Fox granted McDaniel’s motion for default judgment against National Timber Partners LLC of Williamstown, Mass. Fox found that the company failed to meet its financial obligation to the retirement system as required in an October 2012 contract in which National Timber had pledged to purchase APERS’ interest in an investment fund for $110 million.
 
Fox ordered National Timber Partners to pay $16,508,454.68, which represented the remaining amount due to the retirement system at the time the company breached the contract, plus $561,739.75 in pre-judgment interest.
 
The outstanding contract balance due to APERS is $14,860,036.75.  
 
“We are grateful for the Court’s order in this case in which the defendant has not responded to our pleadings or appeared in court to defend their actions,” McDaniel said. “Companies that do business with the State are expected to fulfill their obligations or face the legal consequences if they choose not to do so.”
 
McDaniel filed suit on behalf of APERS against National Timber Partners in September after the company had failed to make the complete second payment of a three-installment contract with APERS.
The third installment that was due Dec. 31 was never made.
 
Earlier this month, the Attorney General filed a motion for a default judgment against the defendant. National Timber Partners had twice asked for extensions of time to respond to the lawsuit but had never submitted a response. No one representing the company was present at today’s hearing.
 

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