Ginn-LA Lawsuits Update
Subpoenas, settlement agreements, and appeals
Palm Coast, FL – June 11, 2010 – GoToby.com receives frequent requests for information about the progress of various lawsuits involving Ginn-LA (real estate developer Bobby Ginn and Ginn’s financial partner, Lubert-Adler). Two lawsuits saw action within the past few weeks.
Liles v Ginn-LA West End
This suit was originally filed in December 2008. It deals with allegations of ILSA violations and fraud related to the appraisal and sale of lots at Ginn sur Mer, a $4.9 billion development underway on Grand Bahama island in the Bahamas. The Federal Court – Florida Middle District – entered an Order granting Ginn’s Motion to Dismiss for improper venue on March 31, 2010.
Plaintiffs filed their appeal to that Order this week. The appeal discloses that three of the named defendants – Stewart Title Guaranty Company, Simon Conway, and Picket Fence Realty – reached settlement agreements with the plaintiffs and have been removed from the complaint. The terms of the agreements are subject to a confidentiality agreement.
Dillworth v. Ginn-LA
This lawsuit was filed May 10, 2010 by Drew Dillworth, Chapter 7 Trustee in the bankruptcy case of Tesoro and Quail West. Both Ginn projects were collateral for a $675 million Credit Suisse loan on which Ginn-LA subsequently defaulted. Both projects were sold through bankruptcy sales. Dillworth, on behalf of creditors of the bankrupt projects, is trying to recover funds from approximately $333 million disbursed directly to Ginn and Lubert-Adler from the proceeds of the Credit Suisse loan.
May 26, 2010, plaintiff issued subpoenas to defendants seeking all documents or communications related to; the appraisal methods used to support the valuation of liened assets, the Credit Suisse loan origination, and the disbursement of the proceeds of the loan.
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