Birmingham law firm sued over $15 million loan in troubled Florida retirement center deal
A New Jersey-based bank is suing a Birmingham-based law firm, alleging legal malpractice over a loan made to a troubled Tampa, Fla. senior living center.
Valley National Bank is seeking compensatory damages from Burr & Forman, along with costs, according to a report in the Birmingham Business Journal.
Attempts to contact the firm for comment were not immediately successful.
The lawsuit stems from a $15 million loan made in 2014 to University Village, a senior living facility that has twice filed for bankruptcy and has been the source of fraud and mismanagement allegations for more than a decade.
Valley National Bank paid $3.2 million in February to settle a legal dispute related to the loan.
According to the lawsuit filed last week in Florida, Valley would never have closed on the loan if it had known the violations to Florida law committed by the facility’s owner at the time, Westport Holdings Tampa.
The attorney who advised on the loan allegedly confessed to lacking the legal expertise on issues related to Florida continuing care facilities before the loan’s closing, according to the suit.
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