Baxter County’s Magness Oil Co. of Gassville has filed a foreclosure lawsuit against a West Memphis gas station operator, according to an Arkansas Business report.
J&P Flash Inc., which is also known as J&P Flash Market, Inc., was supposed to buy a certain amount of motor fuel from Magness Oil Co., according to Magness’ amended complaint filed in January in Crittenden County Circuit Court. The lawsuit said the amount of damages is “yet undetermined” but it’s more than $1 million.
J&P Flash is a separate entity from Flash Market Inc. of Memphis, which was bought in July 2019 by Transit Energy Group of Greenville, South Carolina.
Magness is foreclosing on four of J&P Flash’s properties that were used as collateral to secure the West Memphis gas station operator’s promise to buy Magness’ fuel for various stores, the suit said. The locations are in Crittenden, Chicot, Van Buren and St. Francis counties.
When the stores didn’t buy the fuel, the breach of contract clause was triggered, according to the suit.
In addition, Magness said it is owed money for improving J&P Flash’s stores, according to the suit by attorneys Charles Darwin “Skip” Davidson and Stephen Gershner of the Davidson Law Firm of Little Rock.
J&P Flash didn’t immediately return a call to Arkansas Business for comment and hasn’t filed an answer in the case.
In addition to the lawsuit, the IRS has a federal lien for $1.5 million against J&P Flash, filed in July 2017, according to the suit.
And the Arkansas Department of Finance and Administration has a $181,000 lien against the company for corporate income taxes owed for 2015.
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