Home > News > Industry News > Glass company's suit against developer results in project foreclosure

Glass company's suit against developer results in project foreclosure

Post Time:Nov 12,2013Classify:Industry NewsView:34

Legacy National Bank can foreclose the Legacy Building in Fayetteville now that all the claims of subcontractors and suppliers have been settled, according to a July 24 Northwest Arkansas Times article. Typically, banks initiate foreclosure lawsuits because banks make construction loans that put them in a first lien position. This case was different because a subcontractor, RGC Glass, filed the lawsuit that resulted in the foreclosure.

The Fayetteville, Ark.-based commercial glass and glazing company, filed the suit Sept. 21 against Lynnkohn, a Springdale, Ark.-based developer and owner ofthe Legacy Building.

The glass company claimed in filings that Legacy National Bank failed to secure its first-lien position because it loaned money to build the project after work had started.

Several other suppliers and subcontractors joined the suit, which increased the amount of unpaid claims to about $ 2 million.

Read more

Share this article:

Source: http://www.glassmagazine.com/news-item/commercial/glass-companys-suit-against-developer-results-project-foreclosureAuthor:

Hot News