3 sons sue Peter Karmanos Jr. for $105.6 million
Three sons of Peter Karmanos Jr. have sued the Compuware founder, alleging he owes $105.6 million to a stock partnership set up for their benefit.
In a complaint filed in Oakland County Circuit Court, Peter Karmanos III, Nick Karmanos and Jason Karmanos accuse their father of executing a $101.3 million promissory note from the partnership in 2013 and failing to make any required principal and interest payments.
The three say the stock partnership is owed $4.3 million in interest, plus immediate payment of the promissory note.
“As a result of (Peter Karmanos Jr.’s) failure to make the required payments, pursuant to the terms of the June 2013 Note, (the stock partnership) may accelerate and declare immediately due and payable the entire balance of principal and interest owing on the June 2013 Note,” the suit states.
The promissory note called for payments to be made in annual installments, with 2.15 percent interest, until June 29, 2022, or a year after Karmanos’ death, whichever came first.
According to the suit, Karmanos executed two previous promissory notes from the stock partnership: one for $180 million in 1999 and one for $69.7 million in 2009.
The complaint, filed last week, seeks payment of the $105.6 million, plus at least $25,000 in damages and attorney fees. The case has been assigned to Judge Wendy Potts.
Beside founding Compuware, which is headquartered in downtown Detroit, Peter Karmanos Jr., 73, owns the Carolina Hurricanes of the National Hockey League. According to the suit, he pledged assets held by the stock partnership as collateral in support of the NHL team.
Karmanos retired from Compuware in 2013.
Peter Karmanos III, Nick Karmanos and Jason Karmanos are his sons by his first wife, Barbara Ann Karmanos, who died in 1989. The Barbara Ann Karmanos Cancer Institute is named for her.
Jason Karmanos worked in the Hurricanes’ front office for 15 years until being fired in September 2013 and is vice president of hockey operations for the Pittsburgh Penguins.