Bank Sues Daily Sound
Alleges Paper Breached Loan Contract
Montecito Bank & Trust has filed suit against the Santa Barbara Daily Sound, alleging the company has breached a contract and not been paying back an $80,000 loan it took out two years ago. According to the suit, the five-day-a-week newspaper (for which this reporter once wrote) was to make monthly payments of $806 to the bank, but the last payment the bank had received came on October 13, 2010. “Although demand therefore has been made, no part of said sum has been paid,” the lawsuit said.
The suit names Daily Sound owner Jeramy Gordon, his brother Kyle, and their parents Cynthia and Michael Gordon and alleges breach of written agreement, breach of guaranty, indebtedness, and unjust enrichment. Jeramy Gordon said the paper’s attorneys are working with the bank and “hopefully we’ll have this resolved before our February 2 court date.” Including interest and attorney fees (the bank has hired the Thousand Oaks-based firm of Spiwak & Iezza, which touts itself as “debt collection specialists”), the bank is seeking $99,759.
Last fall the Daily Sound lost its two veteran reporters, Colby Frazier and Eric Lindberg, and has yet to replace them. Longtime News-Press reporter Joshua Molina, who had been freelancing for the paper for a time, was hired as the paper’s editor-in-chief and the paper has used a variety of college students and interns as correspondents to supplement his reporting.