FIRM WINS DISMISSAL OF BANK IN LENDER LIABILITY/CONDEMNATION REMEDIATION SUIT

In a widely publicized case involving the alleged defective construction of a new condominium community resulting in a May 2010 condemnation, the Firm won the dismissal of one of the lead construction lenders to the condemned property from the case. The Firm persuaded the Court that a lender to a condemned multi-family community could not, based on shown errors by the builder and Municipality, be liable for remediation of the builder’s errors in construction. The Firm earlier defeated the Municipality’s motion to have the remediation costs “prime” its first mortgages and then won a motion to compel the Municipality to promptly remediate the property serving as collateral for the Bank’s construction loan.

Mark A. Kearney and Colin J. O’Boyle of Elliott Greenleaf’s Blue Bell office represent the Bank in this successful dismissal of claims against it.