Local News Spotlight

Cleaver car wash trial set for April 2013

Updated: 2012-09-21T05:22:36Z

Jackson County Circuit Judge Charles McKenzie has set April 17 and 18 as the trial dates in the lawsuit between Bank of America and Cleaver Co. LLC, owned by U.S. Rep. Emanuel Cleaver.

Last March, the bank sued Cleaver’s company for non-payment of a loan used to purchase a car wash in Grandview. The bank alleged the company had defaulted on the loan, now worth more than $1.5 million in principal, interest and penalties.

The lawsuit seeks repayment from the company, Cleaver and his wife, Dianne.

Roughly 75 percent of the loan is guaranteed by the Small Business Administration. Taxpayers could be on the hook for more than $1 million if the loan goes into default without some payment by Cleaver Co. LLC.

The Democratic congressman, now running for re-election, has blamed the lawsuit on a business dispute.

| Dave Helling, dhelling@kcstar.com

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