Rep. Cleaver's company looks to dismiss Bank of America lawsuit

Lawyers for a company owned by Rep. Emanuel Cleaver (D-Mo.) have asked a judge to dismiss a lawsuit brought by Bank of America in an effort to collect $1.5 million for an overdue loan and related penalties.

Bank of America loaned The Cleaver Co. $1.35 million in 2002, before Cleaver was elected to Congress, and its suit argues that the company has had trouble making payments throughout the life of the loan. The loan was backed by the Small Business Administration, which means if Cleaver's company defaults, the SBA could pay off about $1.1 million.

The Cleaver Co. used the money to buy a car wash in Missouri.

According to the Kansas City Star, lawyers for The Cleaver Co. asked a judge to dismiss the case entirely, and award legal costs to the company. In contrast, Bank of America has asked the court to put the car wash into receivership, although the judge rejected that request earlier this year.

Assuming the judge does not dismiss the case, a trial is set for April 2013.

Cleaver has said previously that the legal fight is the result of a "business dispute" and that the company has been run by an outside manager. The Star noted that The Cleaver Co.'s filing does not provide any details about a business dispute, and admits that the company took out the loan.

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