Execu-Ride, Inc. Sues 1st Source Bank Division for Consumer Fraud and Malicious Interference
By Business Wire News
By Business Wire News
EAST BRUNSWICK, N.J.
Depositions continue in a lawsuit and counterclaim where Execu-Ride, Inc., a New Jersey car rental company, is suing Trucker’s Bank Plan, an automotive finance company and division of Indiana-based 1st Source Bank for consumer fraud, intentional/malicious interference, and breach of good faith and fair dealing among other counts. Execu-Ride alleges that the bank lowered its borrowing limit based on false information provided to the bank by an Execu-Ride competitor. The bank’s actions, according to the lawsuit, have caused Execu-Ride considerable damage.
In 2013, according to the lawsuit, Execu-Ride’s credit limit was lowered without explanation. According to depositions and a tape-recorded phone call with bank employee William Fazioli, Execu-Ride has since learned that one of its competitors had contacted the bank and alleged that Execu-Ride was closing its locations and selling its building. According to the lawsuit, the bank made no investigation of the claim with Execu-Ride but instead lowered the company’s borrowing limit by $1 million.
When Execu-Ride began negotiating with other lenders, 1st Source Bank backtracked and initiated negotiations to again extend credit to Execu-Ride, according to the lawsuit. As a condition, the bank asked Execu-Ride to release the bank from any and all liability to that point and agree to not call any bank employees or representatives as witnesses in any future litigation.
According to the legal complaint, when Execu-Ride refused to agree to 1st Source’s release terms, the bank foreclosed on the remainder of Execu-Ride’s credit line and filed a lawsuit against Execu-Ride and the banks it was negotiating with to replace 1st Source Bank.
In depositions backed by emails, 1st Source Bank account manager Richard Lewis, who worked closely on the Execu-Ride account, admits that 1st Source Bank was “heavy-handed” in its dealing with Execu-Ride. He also confirmed that the bank “reacted to some rumors” about Execu-Ride and did this despite Execu-Ride living up to its agreements with the bank.
Depositions continue in the case which is expected to go to trial by the end of the year. Copies of relevant depositions, the counterclaim and the audiotaped phone conversation are available for download at www.lawsuitpressrelease.com.