Thursday, January 20, 2011

NXNS Exclusive! Paul Koenig Sued by Minnwest Bank!

This guy, going up against...
...them.
Post by the Hawthorne Hawkman, first photo from Johnny Northside, second photo from www.classicglassandmirror.net.

Last year, when the City Pages and Star Tribune simultaneously published stories on Paul Koenig (pronounced Kay-neg) Comeuppance Day, we wondered when (not if) the Koenigs would be sued.  A source close to one of their many, many creditors said rather ominously, "Just watch the courts."  Well, NoMi bloggers have been doing just that.  For whatever reason, these cases filed in mid-2010 didn't show up on any of our searches until just now.  But the Koenigs and a host of others are now subject to multiple lawsuits from Minnwest Bank.

Johnny Northside passed on to me the Register of Actions for both cases.  I won't have access to a vehicle to get to a scanner until tomorrow, so in lieu of pdf files, the text of each document is retyped after the jump...

...First, the Hennepin County case

Registrar of Actions
Case No. 27-CV-10-16000

Minnwest Bank Metro vs. Komo Group LLC, Kaizen Property Solutions LLC, Paul M Koenig, Aaron Durkop, and Mary Durkop

Case type:  Civil Other/Misc.
Date filed:  7/2/10
Location:  Hennepin Civil
Judicial Officer:  Burke, Susan N.

Party Information:

Defendant Durkop, Aaron, Afton MN 55001, Lead Attorneys:  Kenneth Robert Hertz, retained, 612-325-1161 (W)

Defendant Durkop, Mary, Afton MN 55001, same attorney

Defendant Kaizen Property Solutions LLC, Afton MN 55001, same attorney

Defendant Koenig, Paul M, Afton MN 55001, same attorney

Defendant Komo Group LLC, Afton MN 55001, same attorney

Plaintiff Minnwest Bank Metro, Eagan MN 55121, Lead Attorneys:  Anna Catherine Mickelson, retained, 651-227-9411 (W)

Events & Orders of the Court

7/2/10 - Summons and Complaint and Certificate of Representaion
- Notice of Motion and Motion Memorandum
- Notice of Case Assignment (Judicial Officer: Porter, Charles A. Jr.)
7/7/10 - Affidavit - Other
7/9/10 - Notice to Remove (Judicial Officer:  Porter, Charles A. Jr.)
- Notice of Case Reassignment (Judicial Officer:  Burke, Susan N.)
- Notice of Motion and Motion
7/13/10 - Notice of Motion and Motion
7/16/10 - Temporary Restraining Order Hearing (11:00 AM) (Judicial Officer Burke, Susan N.) 7/15/10 Reset by Court to 7/16/10.
Result:  Held
- Memorandum and Affidavit
- Notice of Motion and Motion
- Order Denying Motion (Judicial Officer:  Burke, Susan N.)
7/30/10 - Informational Statement
8/6/10 - Answer (four separate, identical listings on this date)
8/19/10 - CANCELED Default Hearing (1:30 PM) (Judicial Officer Burke, Susan N.)
- Other
- 8/19/10 reset by Court to 8/19/10
- 8/20/10 reset by Court to 8/19/10
9/3/10 - Scheduling Order (Judicial Officer: Burke, Susan N.)
9/16/10 - Correspondence (Judicial Officer:  Burke, Susan N.)
9/30/10 - Correspondence
11/1/10 - Notice of Motion and Affidavit
- Memorandum
11/5/10 - Affidavit - Other
11/9/10 - Affidavit - Other
11/19/10 - Notice of Withdrawal of Counsel
11/24/10 - Notice of Withdrawal of Counsel
12/13/10 - Memorandum
- Affidavit - Other
12/15/10 - Memorandum and Affidavit
12/20/10 - Motion Summary Judgment (8:30 AM Judicial Officer Burke, Susan N.)
- 11/30/10 reset by Court to 12/20/10
- Result:  Held
12/20/10 - Taken Under Advisement (Judicial Officer Burke, Susan N.)
3/21/11 - Court Trial (7:00 AM) (Judicial Officer Burke, Susan N.)

A summary of court fees is listed, with the only item of note that is that it appears some of the clients changed attorneys from John Garrett Westrick to Kenneth Robert Hertz during the course of these events.

That's right, folks, Paul Koenig is going on trial!  Now, on to the next court case:

Register of Actions
Case No. 62-CV-10-7528

Minnwest Bank Metro vs Paul M Koenig, Michelle L Koenig, PAMIKO PROPERTIES LLC

Case Type:  Contract
Date Filed:  7/22/10
Location:  Ramsey Civil
Judicial Officer:  Awsumb, Robert

Party Information

Defendant Koenig, Michelle L, Afton MN 55001, Lead Attorneys John Garrett Westrick, retained, 651-292-9603 (W)

Defendant Koenig, Paul M, Afton MN 55001, same attorney

Defendant Pamiko Properties LLC, St. Paul MN, 551253392, same attorney

Plaintiff Minnwest Bank Metro, Eagan MN 55121, Lead Attorneys Anna Catherine Mickelson, retained, 651-227-9411 (W)

Events & Orders of the Court

7/22/10 - Summons and Complaint
- Certificate of Representation
7/27/10- Notice of Case Assignment (Judicial Officer:  Awsumb, Robert)
9/23/10 - Informational Statement
11/16/10 - Scheduling Order (Judicial Officer:  Awsumb, Robert)
- Referred to Mediation (Judicial Officer:  Awsumb, Robert)
1/20/11 - Motion Hearing (10:30 AM) (Judicial Officer: Awsumb, Robert)
3/11/11 - Motion Summary Judgment (10:00 AM) (Judicial Officer: Awsumb, Robert)
6/28/11 - Settlement Conference (11:00 AM) (Judicial Officer: Awsumb, Robert)
8/8/11 - Court Trial (9:00 AM) (Judicial Officer Awsumb, Robert)

12 comments:

  1. Nice teamwork, Jeff. Thanks for getting this stuff up quicker than I could today.

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  2. Of course the problem is, at this point, we're not even sure of the specifics of the lawsuit!

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  3. Great News!

    Now...Has Minnwest taken ownership of these properties and if so are they being responsible landlords by maintaining these homes?

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  4. Anon 4:29, Koenig's web of foreclosures left quite a few banks holding the bag: Minnwest was the biggest loser, but there was also US Federal Credit Union, Wells Fargo, Drake Bank, and Aspen Financial, as well as at least one property forfeited to Hennepin County. (Although Aspen held second mortgages and it's unlikely they wound up owning any foreclosed properties.)

    Koenig/Pamiko still ran some houses not lost to foreclosure or tax forfeiture. Minnwest appointed a property management entity and tried to rent out at least some of the houses, with varying degrees of success. Their management firm was at least somewhat more responsive than the Koenigs, but that's not saying much.

    The most difficult part about the disposition of the properties post-foreclosure is that Minnwest reportedly wanted to sell them at inflated prices due to their income-producing potential. They had, after all, been spliced to add more units or more bedrooms. Development partners and owner-occupants wanted to pay actual market value, which was nowhere near the amount leveraged against the properties.

    So for now, many of the Minnwest properties have languished in the post-foreclosure ether.

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  5. Also, wasn't Judge Porter the one who ruled in the JACC lawsuits? I wonder if that had anything to do with him being replaced. Too bad; if it is the same judge, I would have LOVED to see him rule on this case too.

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  6. Google search for Mary Durkop turns up a couple of items - nothing earth shattering, but the juxtiposition is interesting:

    City of Minneapolis website:

    Regulatory, Energy & Environment Committee Agenda
    Standing Committee of the City Council, Minneapolis, Minnesota
    Regular Meeting
    March 22, 2010
    Department of Regulatory Services

    10. Rental Dwelling License at 2939 Lyndale Av N:

    Director of Inspections recommendation to revoke license held by Aaron & Mary Durkop.
    Staff report: 2939 Lyndale Av N RCA
    Action Taken: Approved license revocation.

    City Council revoked the license during their Friday, April 2, 2010 meeting.

    Appears to be revocation for administrative citations - i.e. they were supposed to fix stuff and they didn't.

    MetroNorth Chamber of Commerce newsletter from 2007 mentions her as an "ambassador" at what appears to be a business opening. She is listed as working for Bell Mortgage.

    http://www.metronorthchamber.org/Files/newsletter%20jun%2007.pdf

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  7. Who is the Director of Inspections and how do we establish dialog with him to identify more rental licenses before they reach epidemic proportions like this?

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  8. Mary and Aaron rent a home 2 down from me. It was a lovely home till their tenants trashed it. They are awful. Always have bad tenants and don't do anything with their property. They had a white enclosed trailer filled with some ex-tenants stuff sitting in the driveway and after a day it caught fire (surprise surprise) We knew something was going to happen to it just not how quick and what. they refused to clean uo the mess (MFD had to cut it open and strew the contents about to make sure all of fire was extinguished and then the scrappers quickly moved in)We called them, 311, and finally our CPS was able to work with us to get it cleaned up. She had mentioned she had problems with them previously. they also operated under A&M property solutions for awhile. Hope this helps get them to sell that poor house before it is completely ruined!

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  9. Does anyone know the percentage of rental properties to owner occupied properties in North Minneapolis? How does that compare to the rest of the metro?

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  10. they are not good landlords they take people deposits and dont fix anything mary is very lazy even if you pay rent on time and try to manage what they dont fix

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  11. Hey, when will we be getting an update on this guy?

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  12. I have no idea if this is an active site or not, but at this exact time, I rent a unit from Hamline Housing Trust LLC, a property managed by Mary Durkop and her Team at Kaizen Property Management. I am moving out of the property they manage because it isn't "managed". She never returns calls, they told my new landlord "it is against Hamline Housing Trust LLC to give rental reference" thereby costing me additional monies for security deposit. I would say she has answered maybe 1/10th of my emails to her and may 1/99th of phone calls. Obviously this group is still causing many problem for many people. I have no idea where and who to voice my anger with anymore. I can tell you this. A 1 bedroom apt is suppose to house 2 people. I know if 4-6 (various times) people living in a 1 bedroom above me. I wouldn't rent anything from these people. They still don't even show Hamline Housing Trust LLC as owners, but rather an owner that sold out more than 4 years ago. I've dealt with Paul Koenig prior to Aaron and Mary Durkop. Always told things would get done, but only a very few things addressed. I've been stressed and to the point of complete anger. Please, somebody, do something about this group. I don't know where to go anymore. The Governor of our state or the Mayer of my City. Anyone have any advice?

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