Full List of Cognate Plaintiffs
Jeff A. Moyer, the Chapter 7 Bankruptcy Trustee for the estates of Leo M. Burns, Randall Sandifer, and Ursula Mann-Sandifer;
Lisa Gocha, the Chapter 7 Bankruptcy Trustee for the estates of Todd Cross, Renew Property Services, LLC, and Jesse Strickland.
Leo Burns (“Burns”), an individual who currently resides in Mecosta County, Michigan;
Burns Contracting, Inc. (“Burns Contracting”), a former Michigan corporation with its principal place of business in Grand Rapids, Michigan;
Todd Cross (“Cross”), an individual who lives in the city of Grand Rapids, Michigan;
Renew Property Services, LLC (“Renew”), a Michigan Limited Liability Company with its principal place of business in Grand Rapids, Michigan;
Paula Guy, an individual who resides in the city of Grand Rapids, Michigan;
Tyrone Guy, an individual who resides in the city of Grand Rapids, Michigan;
Brownstone Properties (“Brownstone”), a real estate company with a business address at 753 Eastern Ave. S.E., P.O. Box 7587, Grand Rapids, Michigan 49507;
R3 Station (“R3”), which is located at 1152 Burton Street S.E., Grand Rapids, Michigan 49507;
Mr. Sam Mickens (“Mickens”), an individual who resides in the city of Grand Rapids, Michigan;
Monica Robertson, an individual who lives in the city of Grand Rapids, Michigan;
Precious Creations, a Michigan corporation with its principal place of business located in the city of Grand Rapids, Michigan;
Mr. Jesse Strickland (“Strickland”), an individual who lives in the city of Grand Rapids, Michigan;
Jimmie Taylor, an individual who lives in the city of Grand Rapids, Michigan;
J. Taylor Electric, a former Michigan corporation with its principal place of business in Grand Rapids, Michigan;
Randall Sandifer, an individual who resides in the city of Grand Rapids, Michigan;
Ursula Mann-Sandifer, an individual who resides in the city of Grand Rapids, Michigan.
Mr. Jeremiah White Jr. (“White”), an individual who resides in the City of Grand Rapids, Michigan; and
Reflections, LLC (“Reflections), a Michigan Limited Liability Company with its principal place of business in Grand Rapids, Michigan.
Attorney for plaintiffs, Derek S. Witte, filed a Third Amended complaint in the United States District Court, Western District of Michigan, Southern Division. In this complaint, a summary of each plaintiff’s story was included. Access to the complaints are available from the court through the following link: https://www.pacer.gov/. The summaries below are excerpts and snippets from the Third Amended Complaint that have been condensed. Mercantile Bank had 10 lawsuits in Federal court and one still pending lawsuit in State court. Below are the stories of the 10 plaintiffs in the Federal court cases.
Jeff A. Moyer, the Chapter 7 Bankruptcy Trustee for the estates of Leo M. Burns, Randall Sandifer, and Ursula Mann-Sandifer;
Lisa Gocha, the Chapter 7 Bankruptcy Trustee for the estates of Todd Cross, Renew Property Services, LLC, and Jesse Strickland.
Leo Burns (“Burns”), an individual who currently resides in Mecosta County, Michigan;
Burns Contracting, Inc. (“Burns Contracting”), a former Michigan corporation with its principal place of business in Grand Rapids, Michigan;
Todd Cross (“Cross”), an individual who lives in the city of Grand Rapids, Michigan;
Renew Property Services, LLC (“Renew”), a Michigan Limited Liability Company with its principal place of business in Grand Rapids, Michigan;
Paula Guy, an individual who resides in the city of Grand Rapids, Michigan;
Tyrone Guy, an individual who resides in the city of Grand Rapids, Michigan;
Brownstone Properties (“Brownstone”), a real estate company with a business address at 753 Eastern Ave. S.E., P.O. Box 7587, Grand Rapids, Michigan 49507;
R3 Station (“R3”), which is located at 1152 Burton Street S.E., Grand Rapids, Michigan 49507;
Mr. Sam Mickens (“Mickens”), an individual who resides in the city of Grand Rapids, Michigan;
Monica Robertson, an individual who lives in the city of Grand Rapids, Michigan;
Precious Creations, a Michigan corporation with its principal place of business located in the city of Grand Rapids, Michigan;
Mr. Jesse Strickland (“Strickland”), an individual who lives in the city of Grand Rapids, Michigan;
Jimmie Taylor, an individual who lives in the city of Grand Rapids, Michigan;
J. Taylor Electric, a former Michigan corporation with its principal place of business in Grand Rapids, Michigan;
Randall Sandifer, an individual who resides in the city of Grand Rapids, Michigan;
Ursula Mann-Sandifer, an individual who resides in the city of Grand Rapids, Michigan.
Mr. Jeremiah White Jr. (“White”), an individual who resides in the City of Grand Rapids, Michigan; and
Reflections, LLC (“Reflections), a Michigan Limited Liability Company with its principal place of business in Grand Rapids, Michigan.
Attorney for plaintiffs, Derek S. Witte, filed a Third Amended complaint in the United States District Court, Western District of Michigan, Southern Division. In this complaint, a summary of each plaintiff’s story was included. Access to the complaints are available from the court through the following link: https://www.pacer.gov/. The summaries below are excerpts and snippets from the Third Amended Complaint that have been condensed. Mercantile Bank had 10 lawsuits in Federal court and one still pending lawsuit in State court. Below are the stories of the 10 plaintiffs in the Federal court cases.
Leo Burns & Burns Contracting
Mr. Burns is African American and former owner of Burns Contracting, Inc. In approximately 2003, Mr. Burns met with Pat Julien who arranged various loans for Burns Contracting, Inc. through Mercantile Bank to fund Burns Contracting, Inc.’s equipment and operating costs. Mr. Burns and Burns Contracting had always made their payments, which totaled approximately $8,000 per month. Yet, shortly after the new loan officer visited Mr. Burns, Mercantile demanded immediate payment of the outstanding balance of the loans. Mr. Burns does not recall why the Bank called the loan. In late 2007, Mr. Burns made a payment of $48,000 to Mercantile. Then, in early 2008, Mr. Burns and Burns Contracting brought their next payment to the Bank personally. When Mr. Burns returned to his office, he found numerous notices and liens posted to his front door. Soon after, Mercantile Bank froze the Burns’ bank accounts and seized company equipment for auction. The bank cleared Burns Contracting’s property and auctioned its equipment for far below market value. Mr. Burns filed for bankruptcy in July 2009.
Todd Cross & Renew
Mr. Cross is African American and is the majority owner of Iron Cross, LLC and Renew Property Services, LLC. In 2000, Mr. Cross met Pat Julien at a jobsite where she suggested that if Renew ever needed assistance with banking, Mr. Cross should meet with her. Mr. Cross had just started his company and needed some additional cash flow. So, he contacted Pat Julien. In 2005, Mr. Cross and his partner opened a restaurant: Silver Cactus in Eastown, Grand Rapids. Mr. Cross and his original business partner were responsible for equipping and furnishing the restaurant. They used Mercantile to fund the purchase of equipment needed to run Silver Cactus. Silver Cactus was forced to close in 2007. Mercantile forced Mr. Cross to sell all of the equipment from the restaurant for pennies on the dollar. Around the time Silver Cactus closed, Mercantile told Mr. Cross that all of his real estate was considered “high risk.” Mercantile told them that they were getting “properties like this” off their books. Mercantile told Renew, Mr. Cross, and his partner that they had 60 days to pay their debts in full or Mercantile would foreclose on their properties. Mr. Cross and his partner were unable to find another bank that would take over their loans and were forced into foreclosure on all properties. After Mercantile sold all of the properties, it claimed that Mr. Cross and his partner still owed over $600,000 in deficiencies. To collect, Mercantile attempted to repossess vehicles and questioned Mr. Cross’s neighbors and children regarding the location of assets. Towards the end of 2008, Mr. Cross filed bankruptcy.
Paula Guy, Tyrone Guy, R3 and Brownstone Properties
Tyrone Guy, Paula Guy, Brownstone and R3 Station are all either black or qualify as a minority-owned business. R3 Station is a physical therapy and therapeutic care facility where Paula Guy, an Occupational Therapist, cares for patients. In approximately 2000, Mercantile, through Pat Julien, provided Paula Guy and R3 Station with a business loan. As reflected on the Bank’s internal Watch List reports, no later than December 2007, and possibly earlier, Mercantile initiated an “exit” strategy with regard to the Guys, Brownstone and R3. Mercantile never informed the Guys that the Bank had already decided to “exit” its relationship with them and their companies by late 2007. In December of 2007, even after the Bank formally decided to “exit” the lending relationship with the Guys and Brownstone, the Bank allowed additional draws on the line of credit so that the Guys would complete the building. Then, in January 2008, The Bank pulled the funding on the project, called the loan, and accelerated R3 Station’s debt. Paula Guy and R3 Station were unable to pay the accelerated amount, so Defendants foreclosed. Neither R3, nor Brownstone, nor the Guys had skipped a payment until the Bank demanded payment in full on all of their notes.
Samuel Mickens
Mr. Mickens is African American and he owned and operated the Mickens Group, a real estate development and management company. In approximately 2001, Mr. Mickens met with Pat Julien who provided Mr. Mickens with several loans. In 2006, the Bank informed Mr. Mickens that Pat Julien had retired. After Pat Julien left, Mickens’ loans were transferred to another loan officer. The new loan officer, informed Mr. Mickens that Mercantile would no longer lend him money. Mercantile began to foreclose on many of the homes. Mercantile foreclosed on houses without any regard to whether the mortgage payments were delinquent. Mercantile sold the houses below market value, many of which the Bank sold to itself, and then sued Mr. Mickens for the deficiency. Mercantile currently has a judgment against Mr. Mickens for approximately $400,000. Mercantile has aggressively employed all post judgment remedies available to collect on the judgment, including periodic wage garnishment. Mercantile continues to garnish Mr. Mickens’ wages to this day.
Monica Robertson & Precious Creation
Monica Robertson is African American and she owns and operates Precious Creation, Inc., a daycare company. In 2002, Monica Robertson was introduced to Pat Julien. Ms. Robertson described the process as “effortless,” and even had to turn down Ms. Julien’s offer to loan her more money for capital and other startup costs. Ms. Robertson had an exemplary payment record. She never missed a payment. When Pat Julien left in 2006, Ms. Robertson was assigned to various lenders, until eventually Mercantile placed Bank Vice President Jason Kinzler on her account. Mr. Kinzler told Ms. Robertson that the Bank would not finance her any longer. He said, “Mercantile chooses not to move forward” with her loan. Mr. Kinzler did not state that it was because she was delinquent or for any other reason related to her credit-worthiness. Instead, he said that Bank did not want to do business with these kind of small companies anymore. The Bank gave the Plaintiff 90 days to find another lender, increased her interest rate, and levied various fees and charges against her. The Bank terminated all relationships with Monica Robertson and no one at Mercantile ever told her why.
Mitchell & Jodie Robertson
Mitchell and Jodie Robertson are African American and they owned and operated a number of business entities including Listen and Learn Child Development, Mi-Jo’s, Inc., and Premium Properties Unlimited, LLC. The Robertsons learned that Ms. Julien was actively recruiting black business borrowers for her new employer, Mercantile. Thus, around the year 2003, the Robertsons contacted Mercantile Bank. Ms. Julien told them that they could qualify for a business loan if they wanted one and encouraged them to do so. The Robertsons made timely payments from 2003 through 2008. Although they fell behind on their payments from time to time, they always caught up. Sometime in 2006, Kate McHenry took over as loan officer for Pat Julien and began working directly with the Robertsons. Around that same time, Mercantile realized that when it had made the original loans to the Robertsons they had not asked for any personal guarantees. As a result, on approximately July 10, 2006, Ms. McHenry forced the Robertsons to sign personal guarantees for their business loans. Ms. McHenry told the Robertsons that if they did not sign personal guarantees, the Bank would accelerate their debts immediately. In late 2006, the Robertsons met with a Vice President of Mercantile, Mark Augustyn, and Ms. McHenry to discuss how they had been treated since Pat Julien left the Bank. Mr. Augustyn, who had attended high school with Mitchell Robertson, told him: “Remember in high school when we all tried out for the basketball team and the coach made all the black players run to the end of the court, then made all the white players run to the end of the court? Then he cut all the white guys.” Mr. Augustyn made further comments that “I hear most of the black guys we went to school with are in prison now.” Mr. Augustyn told them to go somewhere else if they did not like their current situation. In early 2007, Mercantile substantially raised the amount due each month on all of the Robertsons’ commercial loans. To this day, the Robertsons do not know why. In 2009, Mercantile forced the Robertsons to short sell the properties owned by Premium Properties. After the foreclosures and the short sale, the Robertsons had a $600,000 (approximate) deficiency that they purportedly owed to Mercantile. After losing all of their properties and businesses, the Robertsons still owed more than they had originally borrowed.
Randall Sandifer & Ursula Mann-Sandifer
Randall and Ursula Mann-Sandifer are African American and they owned Sandmann’s, a restaurant in Grand Rapids, Michigan. In 2004, the Sandifers met with Pat Julien, who originated a construction loan from Mercantile to the Sandifers so they could renovate Sandmann’s. After Pat Julien, Mr. Jason Kinzler became the Sandifers’ loan officer. The Sandifers made all of their payments. Although some of the payments were made late, those payments were made either during the grace period, or within 0-30 days of the due date. From 2004 until 2010, the Bank never complained about these “late” payments, and acquiesced to the Sandifers’ practice of paying within the grace period or within 0-30 days after the due date. However, the Sandifers never defaulted on a payment and always came current with the amount owed. Despite the Sandifers’ continued payments, in 2010, Mercantile hired outside counsel to demand repayment of the construction loan. In December 2012, Mercantile Bank informed the Plaintiffs that their mortgage was due that same month. Mercantile nonetheless called their debt prior to the expiration of the construction loan’s 20-year term, and foreclosed on Sandmann’s. Because of Mercantile’s actions, the Sandifers lost their restaurant and were forced to file for bankruptcy protection.
Jimmie Taylor
Jimmie Taylor is African American and was the sole shareholder of J. Taylor Electric, Inc. In 2005, Mr. Taylor met Pat Julien of Mercantile. Mercantile gave Mr. Taylor a line of credit. In 2006, Mercantile informed Mr. Taylor that Pat Julien had retired. Consequently, Mr. Taylor’s loans were transferred to another loan officer and eventually assigned to Jason Kinzler. In approximately 2007 or 2008, the Bank demanded more collateral from Mr. Taylor. Having nothing else to provide, Mercantile demanded that he take out and pay for a term life insurance policy and name Mercantile as the beneficiary. In 2008, the market for trade companies, such as J. Taylor Electric, Inc., plummeted. Mercantile did not allow Mr. Taylor to proceed with a controlled shutdown. Mercantile immediately called the debt, foreclosed on Mr. Taylor’s building, and took possession of his equipment. Mercantile contacted the general contractors for whom J. Taylor Electric, Inc. was acting as a subcontractor, and demanded money from the general contractors. Mercantile sold Mr. Taylor’s building for well below market value. Mercantile auctioned off Mr. Taylor’s equipment. There was a deficiency after the sale of the properties, and Mercantile sued Mr. Taylor for this deficiency. Mr. Taylor was unable to pay the deficiency and declared bankruptcy in 2015.
Jeremiah White
Mr. White owns and operates the beauty salon, Reflections, LLC. His loan officer was Pat Julien. In 2006, the bank informed Mr. White that Pat Julien had retired. Mr. White’s loans were transferred to another loan officer. Through 2008, Mr. White paid roughly $8,000-per-month to maintain timely payments on all properties. However, after just one late payment, aggressively called the entire debt, foreclosed collateral and forced Mr. White to file for bankruptcy. Mercantile then initiated a sherrif’s sale on the Madison Avenue salon property. Mercantile itself bought the Madison Property at the sherrif’s sale. Mercantile originally allowed the Madison property as the sole collateral on the Bank’s loan to Mr. White. At auction, Mercantile paid little for the property. As a result, Mr. White’s alleged indebtedness was barely reduced. The Bank claimed there was a deficiency after the sale of the property and Mercantile sued Mr. White for the deficiency. Mr. White was unable to pay the deficiency and declared bankruptcy in 2009.
Jesse Strickland
Mr. Jesse Strickland is African American and he owned a shoe and clothing store. Mr. Strickland originally took out a loan through Mercantile in 2002. Mr. Strickland always made his loan payments. And, if he ever fell behind on a payment, he always came current. On approximately November 30, 2007, the Bank decided internally that it would “EXIT” the loan relationship with Mr. Strickland. Mercantile bought the property itself for $66,000 even though in 2002 the Bank loaned Mr. Strickland $200,000 with only the Hall Street property as collateral. The official redemption amount was $67,414.68, but the Bank told Mr. Strickland was told that he would have to pay $88,000 in order to keep his property. Mr. Strickland did not have that kind of money and was forced to let the property go. Following the Sheriff’s sale, there was a deficiency on the loan and Mercantile came to Mr. Strickland to collect. Mr. Strickland lost much of his collateral and filed for personal bankruptcy as a result of Mercantile’s actions.
Mr. Burns is African American and former owner of Burns Contracting, Inc. In approximately 2003, Mr. Burns met with Pat Julien who arranged various loans for Burns Contracting, Inc. through Mercantile Bank to fund Burns Contracting, Inc.’s equipment and operating costs. Mr. Burns and Burns Contracting had always made their payments, which totaled approximately $8,000 per month. Yet, shortly after the new loan officer visited Mr. Burns, Mercantile demanded immediate payment of the outstanding balance of the loans. Mr. Burns does not recall why the Bank called the loan. In late 2007, Mr. Burns made a payment of $48,000 to Mercantile. Then, in early 2008, Mr. Burns and Burns Contracting brought their next payment to the Bank personally. When Mr. Burns returned to his office, he found numerous notices and liens posted to his front door. Soon after, Mercantile Bank froze the Burns’ bank accounts and seized company equipment for auction. The bank cleared Burns Contracting’s property and auctioned its equipment for far below market value. Mr. Burns filed for bankruptcy in July 2009.
Todd Cross & Renew
Mr. Cross is African American and is the majority owner of Iron Cross, LLC and Renew Property Services, LLC. In 2000, Mr. Cross met Pat Julien at a jobsite where she suggested that if Renew ever needed assistance with banking, Mr. Cross should meet with her. Mr. Cross had just started his company and needed some additional cash flow. So, he contacted Pat Julien. In 2005, Mr. Cross and his partner opened a restaurant: Silver Cactus in Eastown, Grand Rapids. Mr. Cross and his original business partner were responsible for equipping and furnishing the restaurant. They used Mercantile to fund the purchase of equipment needed to run Silver Cactus. Silver Cactus was forced to close in 2007. Mercantile forced Mr. Cross to sell all of the equipment from the restaurant for pennies on the dollar. Around the time Silver Cactus closed, Mercantile told Mr. Cross that all of his real estate was considered “high risk.” Mercantile told them that they were getting “properties like this” off their books. Mercantile told Renew, Mr. Cross, and his partner that they had 60 days to pay their debts in full or Mercantile would foreclose on their properties. Mr. Cross and his partner were unable to find another bank that would take over their loans and were forced into foreclosure on all properties. After Mercantile sold all of the properties, it claimed that Mr. Cross and his partner still owed over $600,000 in deficiencies. To collect, Mercantile attempted to repossess vehicles and questioned Mr. Cross’s neighbors and children regarding the location of assets. Towards the end of 2008, Mr. Cross filed bankruptcy.
Paula Guy, Tyrone Guy, R3 and Brownstone Properties
Tyrone Guy, Paula Guy, Brownstone and R3 Station are all either black or qualify as a minority-owned business. R3 Station is a physical therapy and therapeutic care facility where Paula Guy, an Occupational Therapist, cares for patients. In approximately 2000, Mercantile, through Pat Julien, provided Paula Guy and R3 Station with a business loan. As reflected on the Bank’s internal Watch List reports, no later than December 2007, and possibly earlier, Mercantile initiated an “exit” strategy with regard to the Guys, Brownstone and R3. Mercantile never informed the Guys that the Bank had already decided to “exit” its relationship with them and their companies by late 2007. In December of 2007, even after the Bank formally decided to “exit” the lending relationship with the Guys and Brownstone, the Bank allowed additional draws on the line of credit so that the Guys would complete the building. Then, in January 2008, The Bank pulled the funding on the project, called the loan, and accelerated R3 Station’s debt. Paula Guy and R3 Station were unable to pay the accelerated amount, so Defendants foreclosed. Neither R3, nor Brownstone, nor the Guys had skipped a payment until the Bank demanded payment in full on all of their notes.
Samuel Mickens
Mr. Mickens is African American and he owned and operated the Mickens Group, a real estate development and management company. In approximately 2001, Mr. Mickens met with Pat Julien who provided Mr. Mickens with several loans. In 2006, the Bank informed Mr. Mickens that Pat Julien had retired. After Pat Julien left, Mickens’ loans were transferred to another loan officer. The new loan officer, informed Mr. Mickens that Mercantile would no longer lend him money. Mercantile began to foreclose on many of the homes. Mercantile foreclosed on houses without any regard to whether the mortgage payments were delinquent. Mercantile sold the houses below market value, many of which the Bank sold to itself, and then sued Mr. Mickens for the deficiency. Mercantile currently has a judgment against Mr. Mickens for approximately $400,000. Mercantile has aggressively employed all post judgment remedies available to collect on the judgment, including periodic wage garnishment. Mercantile continues to garnish Mr. Mickens’ wages to this day.
Monica Robertson & Precious Creation
Monica Robertson is African American and she owns and operates Precious Creation, Inc., a daycare company. In 2002, Monica Robertson was introduced to Pat Julien. Ms. Robertson described the process as “effortless,” and even had to turn down Ms. Julien’s offer to loan her more money for capital and other startup costs. Ms. Robertson had an exemplary payment record. She never missed a payment. When Pat Julien left in 2006, Ms. Robertson was assigned to various lenders, until eventually Mercantile placed Bank Vice President Jason Kinzler on her account. Mr. Kinzler told Ms. Robertson that the Bank would not finance her any longer. He said, “Mercantile chooses not to move forward” with her loan. Mr. Kinzler did not state that it was because she was delinquent or for any other reason related to her credit-worthiness. Instead, he said that Bank did not want to do business with these kind of small companies anymore. The Bank gave the Plaintiff 90 days to find another lender, increased her interest rate, and levied various fees and charges against her. The Bank terminated all relationships with Monica Robertson and no one at Mercantile ever told her why.
Mitchell & Jodie Robertson
Mitchell and Jodie Robertson are African American and they owned and operated a number of business entities including Listen and Learn Child Development, Mi-Jo’s, Inc., and Premium Properties Unlimited, LLC. The Robertsons learned that Ms. Julien was actively recruiting black business borrowers for her new employer, Mercantile. Thus, around the year 2003, the Robertsons contacted Mercantile Bank. Ms. Julien told them that they could qualify for a business loan if they wanted one and encouraged them to do so. The Robertsons made timely payments from 2003 through 2008. Although they fell behind on their payments from time to time, they always caught up. Sometime in 2006, Kate McHenry took over as loan officer for Pat Julien and began working directly with the Robertsons. Around that same time, Mercantile realized that when it had made the original loans to the Robertsons they had not asked for any personal guarantees. As a result, on approximately July 10, 2006, Ms. McHenry forced the Robertsons to sign personal guarantees for their business loans. Ms. McHenry told the Robertsons that if they did not sign personal guarantees, the Bank would accelerate their debts immediately. In late 2006, the Robertsons met with a Vice President of Mercantile, Mark Augustyn, and Ms. McHenry to discuss how they had been treated since Pat Julien left the Bank. Mr. Augustyn, who had attended high school with Mitchell Robertson, told him: “Remember in high school when we all tried out for the basketball team and the coach made all the black players run to the end of the court, then made all the white players run to the end of the court? Then he cut all the white guys.” Mr. Augustyn made further comments that “I hear most of the black guys we went to school with are in prison now.” Mr. Augustyn told them to go somewhere else if they did not like their current situation. In early 2007, Mercantile substantially raised the amount due each month on all of the Robertsons’ commercial loans. To this day, the Robertsons do not know why. In 2009, Mercantile forced the Robertsons to short sell the properties owned by Premium Properties. After the foreclosures and the short sale, the Robertsons had a $600,000 (approximate) deficiency that they purportedly owed to Mercantile. After losing all of their properties and businesses, the Robertsons still owed more than they had originally borrowed.
Randall Sandifer & Ursula Mann-Sandifer
Randall and Ursula Mann-Sandifer are African American and they owned Sandmann’s, a restaurant in Grand Rapids, Michigan. In 2004, the Sandifers met with Pat Julien, who originated a construction loan from Mercantile to the Sandifers so they could renovate Sandmann’s. After Pat Julien, Mr. Jason Kinzler became the Sandifers’ loan officer. The Sandifers made all of their payments. Although some of the payments were made late, those payments were made either during the grace period, or within 0-30 days of the due date. From 2004 until 2010, the Bank never complained about these “late” payments, and acquiesced to the Sandifers’ practice of paying within the grace period or within 0-30 days after the due date. However, the Sandifers never defaulted on a payment and always came current with the amount owed. Despite the Sandifers’ continued payments, in 2010, Mercantile hired outside counsel to demand repayment of the construction loan. In December 2012, Mercantile Bank informed the Plaintiffs that their mortgage was due that same month. Mercantile nonetheless called their debt prior to the expiration of the construction loan’s 20-year term, and foreclosed on Sandmann’s. Because of Mercantile’s actions, the Sandifers lost their restaurant and were forced to file for bankruptcy protection.
Jimmie Taylor
Jimmie Taylor is African American and was the sole shareholder of J. Taylor Electric, Inc. In 2005, Mr. Taylor met Pat Julien of Mercantile. Mercantile gave Mr. Taylor a line of credit. In 2006, Mercantile informed Mr. Taylor that Pat Julien had retired. Consequently, Mr. Taylor’s loans were transferred to another loan officer and eventually assigned to Jason Kinzler. In approximately 2007 or 2008, the Bank demanded more collateral from Mr. Taylor. Having nothing else to provide, Mercantile demanded that he take out and pay for a term life insurance policy and name Mercantile as the beneficiary. In 2008, the market for trade companies, such as J. Taylor Electric, Inc., plummeted. Mercantile did not allow Mr. Taylor to proceed with a controlled shutdown. Mercantile immediately called the debt, foreclosed on Mr. Taylor’s building, and took possession of his equipment. Mercantile contacted the general contractors for whom J. Taylor Electric, Inc. was acting as a subcontractor, and demanded money from the general contractors. Mercantile sold Mr. Taylor’s building for well below market value. Mercantile auctioned off Mr. Taylor’s equipment. There was a deficiency after the sale of the properties, and Mercantile sued Mr. Taylor for this deficiency. Mr. Taylor was unable to pay the deficiency and declared bankruptcy in 2015.
Jeremiah White
Mr. White owns and operates the beauty salon, Reflections, LLC. His loan officer was Pat Julien. In 2006, the bank informed Mr. White that Pat Julien had retired. Mr. White’s loans were transferred to another loan officer. Through 2008, Mr. White paid roughly $8,000-per-month to maintain timely payments on all properties. However, after just one late payment, aggressively called the entire debt, foreclosed collateral and forced Mr. White to file for bankruptcy. Mercantile then initiated a sherrif’s sale on the Madison Avenue salon property. Mercantile itself bought the Madison Property at the sherrif’s sale. Mercantile originally allowed the Madison property as the sole collateral on the Bank’s loan to Mr. White. At auction, Mercantile paid little for the property. As a result, Mr. White’s alleged indebtedness was barely reduced. The Bank claimed there was a deficiency after the sale of the property and Mercantile sued Mr. White for the deficiency. Mr. White was unable to pay the deficiency and declared bankruptcy in 2009.
Jesse Strickland
Mr. Jesse Strickland is African American and he owned a shoe and clothing store. Mr. Strickland originally took out a loan through Mercantile in 2002. Mr. Strickland always made his loan payments. And, if he ever fell behind on a payment, he always came current. On approximately November 30, 2007, the Bank decided internally that it would “EXIT” the loan relationship with Mr. Strickland. Mercantile bought the property itself for $66,000 even though in 2002 the Bank loaned Mr. Strickland $200,000 with only the Hall Street property as collateral. The official redemption amount was $67,414.68, but the Bank told Mr. Strickland was told that he would have to pay $88,000 in order to keep his property. Mr. Strickland did not have that kind of money and was forced to let the property go. Following the Sheriff’s sale, there was a deficiency on the loan and Mercantile came to Mr. Strickland to collect. Mr. Strickland lost much of his collateral and filed for personal bankruptcy as a result of Mercantile’s actions.
Third Amended complaint in the United States District Court, Western District of Michigan, Southern Division.
