Press Release From A Beaver Island Resident Who Alleges He Was Ripped Off By A Charlevoix County Circuit Court Judge And Fifth Third Bank

It is amazing the tips that have been sent in to the blog and the amazing contacts that we are making. We are encouraging our readers to tell us their stories in their own words and we will post it.

 This blog was started as a sounding board for those who are victimized by the system. Thanks everyone for the encouragement and we invite others to please come forward with the truth.

This tip from Beaver Island came in an email from the victim last night.

Thank you Sir, and God Bless you and your family. Please keep the tips coming in.

See the document:

FOR IMMEDIATE RELEASE

Date:  February 8, 2013

Contact:  L. Joseph Rahn

                33171 Mrs. Reddings Trail

                Beaver Island, MI  49782

                231-448-2035

               

Subject:  Founder of Lakeland Boatworks, Inc. files complaint with the Michigan Judicial Tenure Commission and an American with Disabilities civil rights action against the Charlevoix County Circuit Court and Judge Richard J. Pajtas.

L. Joseph Rahn, the founder of Lakeland Boatworks, Inc. and retired Economic Development Director for the City of Hastings has filed a complaint with the Michigan Judicial Tenure Commission and a Title II civil rights action against the Charlevoix Circuit Court and Judge Richard J. Pajtas for alleged violations of law during a hearing that took place on April 26, 2013 in the matter of Fifth Third Bank v. Lawrence J. Rahn.

Fifth Third Bank filed suit to enforce an alleged personal guarantee on the part of Rahn.  Lakeland Boatworks, Inc. was capitalized by a personal investment of over $1M from Rahn and his wife Barbara and a $50,000 loan to Lakeland Boatworks, Inc. from Fifth Third Bank.  When  Lakeland Boatworks, Inc. closed their Syracuse, NY showroom in 2009 and their Middleville manufacturing operation in 2010, Fifth Third Bank received over $120,000 worth of collateral, including an $85,000 boat that was seized by Lakeland’s  former landlord, to satisfy the $50,000 loan obligation.

In October of 2012, Fifth Third Bank filed suit against L. Joseph Rahn personally for $37,000.  Fifth Third did not provide an accounting of the debt or even a bill detailing the amount owed.  In reviewing the papers filed in Fifth Third Bank’s complaint, Rahn discovered that the bank had sold over $20,000 of Lakeland inventory that was not mentioned in the court record, reportedly “sold” the $85,000 boat to the landlord that had seized it, and failed to substantiate how they arrived at the damages they were claiming.  An e-mail from Richard Klein of Fifth Third Bank to Rahn’s wife Barbara stated that the U.S. Small Business Administration was refusing to pay their loan guarantee because Fifth Third could not locate the original loan documents. 

Rahn filed a demand for a jury trial, as guaranteed under the U.S. and Michigan constitutions and a seven page brief.  He then hired an attorney.  Over the next six months, more than 150 pages of documents, briefs and motions were filed with the Charlevoix Circuit Court.  Over thirty pages of demands for documents were sent to Fifth Third Bank regarding the “sale” of the $85,000 boat, contradictory statements entered into the court record by Fifth Third and a demand for an accounting of the debt.  “Things  just didn’t add up”, said Rahn

On April 26, 2013 a hearing was held before Judge Richard J. Pajtas to consider a Motion to Adjourn filed by Rahn’s attorney and a Motion for Summary Disposition and Motion to Strike Jury Demand filed by Fifth Third Bank.

After and hour and a half of arguments, Judge Pajtas ruled in favor of Fifth Third Bank’s Motion for Summary Disposition, indicating that there was not one single material fact in dispute,  and entered a judgment against Rahn for $49,000.

L. Joseph Rahn has filed a complaint with the Michigan Judicial Tenure Commission for violations on the part of Judge Pajtas of the Michigan Court Rules regarding the rules of evidence and allowing the attorney representing Fifth Third Bank to present testimony regarding matters not entered in the court.  In addition, the Michigan Court of Appeals had previously ruled that a Motion for Summary Disposition is premature until discovery, which had been initiated in this case, is completed.

Rahn also filed a Title II complaint with the U.S. Department of Justice against the Charlevoix Circuit Court for pre-hearing harassment he received from the security system in the court, due to the fact that he was wearing dermal gloves, and for “largely inferior service provided by a government agency” to a disabled person. 

Senator Debbie Stabenow has submitted a letter on behalf of Rahn to the U.S. Department of Justice in support of his claim.