Superior Court Hearing Set in Solar Alliance of America $442,000 Debt Default Agreement with Solar West Electric
August 10, 2017 Lifestyle News(PRLEAP.COM) San Diego, Calif., August 10, 2017. Solar West Electric (http://solarwestelectric.com) announced today that the San Diego County Superior Court of California has set an October 27th hearing (case number 37-2017-00000134-CU-BC-CTL), in response to Solar Alliance of America's default on a debt settlement agreement with Solar West Electric, a local San Diego family-owned solar installation company.
According to court documents, Solar Alliance has accrued a debt of $442,921.97, and did so over multiple months in 2016 and 2017 and had not paid Solar West Electric, who they hired as a subcontractor to install systems sold by Solar Alliance employees. Court documents show that Solar West Electric had agreed to accept a lesser amount from Solar Alliance of $299,169, but Solar Alliance subsequently defaulted on the agreement despite a reduction of nearly $150,000. Court documents filed show that Solar Alliance of America now faces full payment of the original $442,921.97 plus interest and legal fees, according to those documents.
"We are pleased by the court setting a hearing date in this matter." said Patrick Schmit, President of Solar West Electric. "All we are asking is that Solar Alliance pay the debts they knowingly incurred. I really don't understand why Solar Alliance of America avoided paying nearly $450,000 of debt to us, while they continued to sell solar systems, and while their parent company, Solar Alliance Energy, continued to announce that they were buying other companies and making other acquisitions with money that I think should have gone toward paying their debt to us. Even as late as yesterday, Solar Alliance Energy made an announcement about submitting a bid for work in Illinois while their San Diego company, Solar Alliance of America has defaulted on hundreds of thousands of dollars of debt."
"We will take whatever legal actions we need to take in order to get paid." Said Rhett Miller, CEO of Solar West Electric. "Over the past year we have had multiple meetings and conference calls with executives of both the parent company, Solar Alliance Energy, and Solar Alliance of America including Jason Bak, CEO of Solar Alliance Energy, Eric Knudsen, CFO of Solar Alliance of America and Alex Tiller, former President of Solar Alliance of America. Each time we would be flexible on the payment terms and each time the executives, including Jason Bak, the CEO of Solar Alliance Energy, gave us their word, that the debt was going to be paid as soon as possible," continued Miller. "Yet after months and months of promises, Solar Alliance's debt, interest, and legal fees sit at nearly half a million dollars, and liens and lawsuits have been placed on people's homes."
"What's really unexplainable to me," added Patrick Schmit, " Is that Solar Alliance Energy's CEO Jason Bak, continues to issue announcements of deals, purchases, and new business development while Solar Alliance of America, their wholly owned American company is mired in debt and lawsuits - something just doesn't seem right here. Why is Jason Bak making announcements about the publicly traded parent company while that very same company owns Solar Alliance of America, which is nearly a half million dollars in debt to us? This doesn't make sense to me."
About Solar West Electric
Formed in 2008, Solar West Electric (http://solarwestelectric.com) sells, designs, and installs residential solar electric systems to homeowners throughout San Diego.