Minot, ND — Todd Berning, the former CEO and founder of EPIC Companies, has been named as a defendant in a multi-million-dollar foreclosure lawsuit. The legal actions stem from a $3 million mortgage default impacting several properties developed by his company in North Dakota.
Filed by Bravera Bank in North Central District Court on October 18, the lawsuit alleges that Henry Land Holding LLC, now managed by EPIC Holdings LLC, failed to meet their financial obligations. EPIC Holdings LLC took ownership after United Community Bank, the original mortgagee, merged with Bravera in October of 2023.
The defaulted mortgage, originating on August 13, 2021, was intended for purchasing nine lots next to The Tracks, a substantial development project on 37th Avenue Southwest in Minot. The complaint underscores that Berning, together with Brian Kounovksy and William Langer Gokey II, provided commercial guaranties assuring the payment of the mortgage. According to the filings, following a written payment demand from Bravera on September 4, substantial amounts remained unpaid.
Difficulty serving Berning with the legal papers has necessitated issuing the notice by publication, the filing suggests. Aside from the primary defendants involved directly with the mortgage, several companies including Ackerman-Estvold Engineering and Management Consulting, Minot Paving Company, and others named in the lawsuit may have interests tied to construction liens filed in July.
These liens, however, are considered subordinate to the primary mortgage, the lawsuit states. The move to litigate follows EPIC Companies’ abrupt shutdown in May, which has led to changes of ownership or management across numerous properties previously affiliated with the firm. Known for its ambitious projects like Blu on Broadway and developing the downtown Big M building, EPIC’s financial unraveling became more evident with its Chapter 11 bankruptcy protection filings on July 8.
In these bankruptcy filings, EPIC Companies reported assets worth $10-50 million while listing a substantial number of creditors, ranging between 50 to 199, including many investors predominantly based in North Dakota.
Adding to Berning’s precarious position, 7Seven Property Partners LLC of Minot has also pursued foreclosure actions against him in Cass County for a separate defaulted loan valued at $506,933.
While these legal battles underscore a significant crisis for prominent regional developer EPIC Companies, they also cast a shadow on the real estate development scene in North Dakota, marking a significant economic impact and signaling caution among regional developers and investors.
The unfolding legal scenarios paint a complex picture of financial and operational challenges faced by local firms, potentially influencing future residential and commercial property developments in the region.
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