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Junction City RV dealer files lawsuit against equity firm.

Byline: Tim Christie The Register-Guard

More fallout from the implosion of the RV industry has emerged in a nearly $1 million lawsuit filed by Guaranty RV against a New York private equity firm.

The dispute involves Junction City-based Guaranty, one of the nation's largest RV dealers; Monomoy Capital Partners, which buys and turns around troubled businesses; and Western Recreation Vehicles, a now defunct RV maker in Yakima, Wash. According to the suit filed Feb. 8 in Lane County Circuit Court, Monomoy, which bought Western RV in November 2006, approached Guaranty in November 2007 about buying coaches from Western RV. At the time, Western RV owed Guaranty more than $260,000 for unpaid rebates, warranty payments and other costs.

Monomoy officials promised to pay the debt and ensure that Western RV remain a viable manufacturer, according to the suit. Based on those promises, Guaranty said, it bought 11 Western RV coaches.

Guaranty alleges Monomoy knew those promises "were untrue, or made the statements recklessly without knowing if the representations were true or false."

Monomoy made some payments but never completely paid off the $260,000 debt. Then in April 2008, Monomoy shut down Western RV. Guaranty said the closure cost it about $160,349 because the vehicles it had in inventory lost value. Guaranty still has two of the 11 vehicles in stock, representing about $554,736 in losses to Guaranty, according to the lawsuit.

Guaranty alleges it suffered damages totaling $976,752 because of Monomoy's actions.

A Guaranty representative declined to comment on the suit. A Monomoy spokesman did not return a message.
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Title Annotation:Business
Publication:The Register-Guard (Eugene, OR)
Date:Feb 19, 2010
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