Ken Neumann, CEO of Chicago-based Neumann Homes, and Gary Tadian have made headlines once again. Only this time, it's for a deal that never happened.
In January 2007, two years after Neumann bought Tadian Homes in Detroit, the Chicago builder was supposed to complete a more than $11 million deal for two parcels of land in Kane County, Ill., from Tadian's Birmingham, Mich.-based NRD Development, according to court documents. But NRD alleges in a suit filed Sept. 12 in the U.S. District Court of Chicago that the company only bought one of the parcels and breached a contract in not buying the second.
An assistant to Neumann says the case has been thrown out, but NRD's attorneys are moving forward as if it is still active. The case docket does not include a dismissal order.
Neumann was originally scheduled to close on the second lot, called the "Nagel East Parcel," on June 30, 2006, but it exercised an option to extend the deadline to Jan. 3, 2007, according to court documents. NRD alleges that Neumann did not close on the January deadline and asked for an extension. NRD claims it offered several closing date extensions, but Neumann still did not fulfill its contractual obligations within that timeframe.
On March 15, 2007, NRD sent Neumann a letter giving the builder 15 days to close the deal. NRD claims the sale of the parcel is still outstanding.
In the suit, NRD asks for a package that includes the remaining $9.8 million Neumann allegedly owes NRD for the land, as well as the assumption of the Nagel East mortgage, attorney's fees, and interest that has accrued since the scheduled date of closing. By not completing the purchase, NRD also alleges that Neumann breached a personal guaranty.