General

Funding dispute of redevelopment leads to lawsuits

The redevelopment of property is a complicated process. When things run smoothly a project may be completed on time and on budget. When however, issues arise, at any stage in the process a developer might face a project with an extended timeline, accompanied by extra expense. A South Florida redevelopment appears to be facing an issue that could impact the bottom line.

Two parties involved in the project have filed lawsuits against each other. The head of the redevelopment of Plantation’s Fashion Mall, recently accused one of the investors in the project of diverting funding intended for the process. In addition to diversion of funds he is also alleging breach of fiduciary duty, fraudulent misrepresentation and defamation.

In its claim, Tangshan Ganglu Iron & Steel Co., a company based in China alleged that a large chunk of the $50 million in funding was misappropriated by the leader of the project. It also claimed that the project leader sought title to property with the money provided by the iron and steel company. It seeks to have the current project manager removed from the project.

Though the project has taken many twists and turns and has many layers, including trying to obtain a visa and a Chapter 11 bankruptcy, the thing to take away from the case is that matters involving business disputes are often complex. Accordingly, in addressing them, it is important to work with a lawyer who handles such matters. Doing so could have an impact not only on how long it takes to resolve the matter but the financial impact as well.

Source: South Florida Business Journal, “Fashion Mall redevelopment manager fires back with lawsuit,” Brian Bandell, May 23, 2014

Mon Aug 27, 1:32pm