Appalachian Bible College sues over donation

[TexasTowelie]

Appalachian Bible College is suing a Pennsylvania company in federal court claiming it failed to honor a donor commitment.

The school in Mount Hope in Raleigh County says Foremost Industries pledged $4 million before the company was sold.

Ralph Michael made a deal to sell his manufactured homes company in May 2015 below what it was worth as long as the buyer honored his commitment to the school, the lawsuit states.

The asking price for Foremost Industries was $10 million, but Michael agreed to sell it to Daniel Gordon for $3 million plus the $4 million Michael had promised the school, according to the complaint. Gordon allegedly led Michael to believe he intended to continue to operate Foremost Industries, keep the employees working and satisfy the gift agreement, when he really had no such intention, the lawsuit states.

- See more at: http://www.wvgazettemail.com/news-cops-and-courts/20160731/appalachian-bible-college-sues-over-donation

[marybourg]

1. This is called a

"third party beneficiary suit".

[elleng]

2. 'The lawsuit also says that Michael didn’t know when he sold the company to Gordon

that in 2005 Gordon was sentenced to spend 42 months in federal prison for wire fraud, money laundering and conspiring to falsify books and records.

“It is clear from Daniel Gordon’s past and present actions and the actions and representations of Foremost Industries Inc. that Foremost Industries Inc. has no intention of complying with the Gift Agreement,” the lawsuit states.'