YOUNGSTOWN — A judge granted a $424,458 default judgment against SOBE Thermal Energy Systems LLC, the beleaguered downtown utility in the hands of a court-appointed receiver, filed by a Niles company for nonpayment of a bill.

Mahoning County Common Pleas Court Judge Maureen Sweeney granted the default judgment in favor of Alcon Mechanical Piping Inc. because SOBE never responded to the July 19 lawsuit.

Alcon filed the complaint against SOBE for nonpayment for the January 2024 installation of piping at two downtown businesses that receive steam heat from SOBE on behalf of that company.

The lawsuit states that on Sept. 20, 2024, SOBE CEO David Ferro “delivered a check to plaintiff in the amount of $400,000 and was deliberately obtuse and evasive as to whether or not the check could be cashed.”

When the check was cashed Feb. 18, the lawsuit claims it was returned for insufficient funds.

Alcon sent a letter to SOBE on April 17 saying it would sue for “passing of bad checks,” and SOBE “has not responded to this demand in any meaningful respect,” according to the lawsuit.

Alcon on Sept. 22 filed a motion for default judgment when SOBE never responded to the lawsuit.

Sweeney awarded Alcon a $428,458 default judgment, which includes compensatory damages, as well as 8% interest from Wednesday, the date of the judgment, and court costs.

At an Oct. 22 public meeting, Reg Martin, SOBE’s court-appointed receiver, said the company is “insolvent” with no assets besides its building and a few pieces of equipment while owing about $4 million to creditors.

“SOBE is history,” Martin said at that meeting. “I have to run it. We’re never going to have enough revenue to build a system that’s bigger and better.”

SOBE provides utility services to 28 downtown Youngstown buildings. The services include heating, cooling and hot water and the customers make up much of downtown.

Martin was appointed SOBE receiver Sept. 26 at the request of the Public Utilities Commission of Ohio as the company was about to go out of business.

A rental steam plant that provided utility services for SOBE customers was repossessed Sept. 30 by court order because SOBE owes $383,214 in back payments to the steam plant’s owner, Wabash Power Equipment Co. of Wheeling, Illinois.

SOBE breached a lease agreement with Wabash for the steam plant at its Youngstown facility, 205 North Ave. SOBE signed a lease in November 2019 to use Wabash’s steam plant at $19,500 a month.

A federal judge ruled Jan. 29 in favor of Wabash’s motion for default judgment of $383,214 when SOBE never responded to the case. Wabash then filed May 23 in Mahoning common pleas to repossess and remove the equipment after SOBE refused many demands for the property, according to court documents.

The repossession was delayed a few times since Judge Anthony Donofrio granted a default judgment Aug. 21 against SOBE, which didn’t respond to the lawsuit.

The city on Sept. 9 filed a motion to intervene “to ensure the health, safety and welfare of residents and businesses in downtown Youngstown,” and sought a stay of the judgment of at least 30 days. A settlement was reached Sept. 16 for the city to pay $20,000 to Wabash to keep the mobile steam plant at SOBE until Sept. 30. The plant was repossessed that day.

Martin was able to get a smaller rental steam plant a few days after the old one was repossessed. But it took until Oct. 9 for it to operate.

Documents filed with common pleas court show Martin is being paid $200 an hour to be SOBE’s receiver and attorney Kenneth A. Goldberg is being paid $375 an hour to act as his legal counsel.

An Oct. 15 request for the compensation rates, filed by Goldberg, states when Martin was receiver for Youngstown Thermal, SOBE’s predecessor, from 2017 to 2019, he was paid $150 an hour and Goldberg received $300 an hour.

Donofrio approved the rates Oct. 16.

Goldberg submitted the first motion for approval of fees and costs on Oct. 16 with Donofrio approving the amounts Oct. 24.

Martin received $15,478 in fees and costs for Sept. 26. the day he was named receiver, to Oct. 12 and Goldberg received $13,788 for work between Sept. 29 and Oct. 21.