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Plaintiff (financial institution) sues Defendant (guarantor) for Breach of Guaranty

COOK COUNTY RECORD

Wednesday, December 25, 2024

Plaintiff (financial institution) sues Defendant (guarantor) for Breach of Guaranty

Federal Court
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U.S. District Court for the Western District of Pennsylvania | Official website

Continental Bank has taken legal action against an individual for breach of a financial agreement, seeking substantial compensation. On November 12, 2024, Continental Bank filed a verified complaint in the United States District Court for the Northern District of Illinois against Michael Irwin, alleging default on a guaranty related to an equipment finance agreement.

The case revolves around an Equipment Finance Agreement dated December 6, 2022, between Continental Bank and Rysoti, Inc., which involved financing several Freightliner Cascadia trucks. Michael Irwin guaranteed Rysoti's obligations under this agreement. According to the complaint, Rysoti defaulted by failing to make required payments, and subsequently, Irwin also failed to fulfill his guaranty obligations. The bank claims it is entitled to declare all outstanding payments due immediately and seeks $117,254.67 in unpaid dues along with additional fees and interest.

Continental Bank argues that following Rysoti's bankruptcy filing on July 19, 2024, they obtained relief from stay to recover their financed equipment but have only managed to repossess two out of four trucks. The remaining vehicles are reportedly damaged and held by a third party. As a result of these complications and defaults by both Rysoti and Irwin, Continental Bank asserts its right to recover not only the principal amount but also late charges, miscellaneous fees, repossession costs totaling $11,200.00, storage fees of $1,700.00, inspection fees of $498.00 as well as attorneys' fees and costs.

The plaintiff is requesting the court enter judgment in its favor for the full amount owed under the guaranty plus additional accrued charges and legal expenses. They seek prejudgment interest at 18% per annum from the date of default until judgment entry.

Representing Continental Bank is attorney C. Randall Woolley from Darcy & Devassy PC located in Chicago. The case identification number is 1:24-cv-11623.

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