Update 14 December 2010 – Somersett has responded to the deficiency judgment claim, and there are some wild accusations. Lawyers are liars, but the response includes conspiracy charges, some info about the Roundabout Bistro lease, claims that the foreclosure was illegal, and then claims that the foreclosure was delayed causing $1M in additional financial harm.
If you have been following the fate of Somersett Town Center, you know that Somersett Development LTD lost the property to foreclosure on September 28. The latest development is that foreclosing party has just filed a $9.3M deficiency judgment law suit in United States District Court to recover their investment and costs. Not only does the suit name Somersett Development LTD as defendant, but also Somersett LLC, Smith Realty Finance, and the principles as individuals. Sometimes “personal guarantees” get personal.
Though the amount of the requested judgment is not discounted for the current market value of the Town Center, the net amount is still in the $5M range. Will this be the straw that finally pushes Somersett into bankruptcy?