Apr 13, 2006 By Christine Haines 3 min read

PITTSBURGH – The lease for a Quizno’s Classic Subs store in Morgantown owned by state Rep. Peter J. Daley, D-California, and his wife was removed from bankruptcy proceedings Tuesday. Federal Bankruptcy Judge Bruce McCullough granted the request made by Uniontown attorney Dan White on behalf of KTA Properties, LLC.

“My client’s West Virginia attorney will handle the eviction. It’s been removed from the bankruptcy proceeding,” White said.

White said the lease for American Deli’s Inc, doing business as the Quizno’s store in Morgantown had expired in June of last year. Rent was paid through the end of July, but the $2,400/month lease has not been paid since that time and according to the court filing, KTA is owed $12,000. White said the store was abandoned in November 2005, but the property was not voluntarily turned over to the owners.

According to the bankruptcy trustee handling the case, the business has no assets to pay any of its creditors.

According to then bankruptcy filing, Daley’s wife, Sally Daley, is listed as the president of the corporation. The West Virginia Department of State’s Business Division lists Peter J. Daley as the president and Sally Daley as the secretary/treasurer. The Business Division lists the company as being granted a license to do business in West Virginia on Aug. 23, 2000, with that license revoked May 21, 2003 for failure to file annual reports and to pay its corporate license tax. According to bankruptcy court records, the store remained open until November 2005. Bankruptcy was declared a month later.

According to the bankruptcy filing, American Deli’s Inc., doing business as Quizno’s Classic Subs has $631,955.72 in total liabilities, with no assets. Among the debts are $89,726.73 in federal taxes from 2002-2004, Pennsylvania state taxes of $42,633.36 and City of Morgantown business and occupation taxes of $2,408.50.

The company listed losses of $233,922 for 2002, $55,574 for 2003 and an estimated $13,992 for 2004, since no return was filed and an extension was sought. The statistics are for two Quizno’s stores, one in Morgantown, the other in State College. Information for 2005 was not included in the filing.

According to the filing, the Daley’s held 52 percent interest in the business. Other partners were Kermith Sonnier Sr. of Lake Charles, La., with 24 percent, and Barbara Charlton of Greensburg, with 12 percent. Albert Giles of Fredericktown and David Fleming Taylor each held six percent of the ownership. Sally Daley, Sonnier, Giles and Taylor are listed as creditors, as is Daley’s law firm, Peter J. Daley and Associates.