Economic uncertainty inevitably leads to litigation in all sectors. Here are five different real estate cases with issues that will lead to even more cases filed in the near future.
1. Return of Deposits for Unbuilt Co‑Living Units
Case: Thirty‐Three South American Buyers v. Location Ventures (Miami‑Dade Cir. Ct., filed Feb. 2024)
Issue: Breach of contract—developers failed to build promised co‑living condominium projects.
Claimed Damages: Nearly $10 million in deposit refunds (33 plaintiffs aggregated)
Summary: In February 2024, 33 purchasers from Argentina, Colombia, and Ecuador filed suit against developer Rishi Kapoor’s Location Ventures, seeking return of approximately $10 million in deposits they paid for co‑living units that were never constructed in Coral Gables, Coconut Grove, and Miami Beach. The plaintiffs allege the projects stalled indefinitely and that Kapoor should refund all advanced payments under the original purchase agreements.
2. Fraud, Breach of Contract, Wrongful Foreclosure
Case: Dooley Developments USA LLC v. Stallion Funding, LLC (Dallas Cnty. Ct., jury verdict Oct. 10, 2024)
Issue: Alleged predatory “loan‑to‑own” fraud and wrongful foreclosure.
Claimed Damages: $16 million counterclaim by defendants (rejected by jury)
Summary: In October 2024, a Dallas jury rejected Stallion Funding’s $16 million counterclaim against Dooley Developments, finding instead that the lender had fraudulently structured a financing deal and wrongfully foreclosed on a lucrative Old East Dallas townhome development. The jury awarded Dooley over $6 million in damages for breach of contract, usury, and promissory estoppel.
3. Loan Default & Receiver Appointment
La Plata Capital LLC v. ECO Roof and Solar Inc. et al.
- Court & Filing: Denver District Court (Case No. 24cv32625), filed August 28, 2024
- Issue: Breach of loan agreement—borrower default on commercial roofing/solar contractor loan
- Claimed Damages: $6.5 million principal loan plus interest; plaintiff seeks appointment of a receiver over the debtor’s assets
- Summary: La Plata loaned ECO Roof and its principals $6.5 million in 2022 to fund solar installations. After ECO missed repayment, La Plata sued for breach of contract and moved to place ECO into receiver‑controlled wind‑down to protect collateral value.
4. Dividend & Loan Misappropriation Among Co‑Owners
Uzi Berger v. Avi Schwalb et al.
- Court & Filing: Denver District Court (Case No. 24cv33000), filed October 2, 2024
- Issue: Breach of fiduciary duty and contract—partners allegedly diverted loans and withheld distributions
- Claimed Damages: $16,294,000 (unpaid dividends plus unauthorized loans against eight properties)
- Summary: Berger, a real‑estate investor, claims his former partners in a multi‑property LLC took out over $16 million in loans on jointly held assets without his consent and then refused to distribute agreed‑upon profits. He seeks disgorgement of the loans and unpaid dividends.
5. NHN Properties, LLC v. Monster Investments, Inc. et al.
- Court & Filing: U.S. District Court for Maryland (No. 8:24‑cv‑00081), filed January 9, 2024
- Issue: Breach of loan agreement—borrower accused of diverting $2.5 million loan for unauthorized purposes
- Claimed Damages: Over $10 million (including principal, interest, and related fees)
- Summary: Lender NHN Properties alleges that Monster Investments obtained a $2.5 million construction loan for a commercial development but instead “misused” the proceeds—spending on unrelated ventures—breaching the loan covenants. NHN seeks full recovery of principal, accrued interest, legal fees, and pre‑judgment interest, totaling just over $10 million.
David Seidman is the principal and founder of Seidman Law Group, LLC. He serves as outside general counsel for companies, which requires him to consider a diverse range of corporate, dispute resolution and avoidance, contract drafting and negotiation, and other issues. In particular, he has a significant amount of experience in hospitality law by representing third party management companies, owners, and developers.
He can be reached at david@seidmanlawgroup.com or 312-399-7390.
This blog post is not legal advice. Please consult an experienced attorney to assist with your legal issues.
Photo Credit: Chicago YIMBY
