Judge again denies motion to stop foreclosure of Perkins Rowe

For the second time in two weeks, the U.S. 5th Circuit Court of Appeals has refused to stop the planned foreclosure sale of Perkins Rowe by KeyBank National Associates, the Ohio lender that is owed $200 million for the mixed-use development from developer Tommy Spinosa. In a ruling issued Nov. 1, the appeals court denied a motion by Spinosa’s attorney to stop the bank from taking back the property. The court had previously denied a separate motion by Spinosa’s attorney seeking to halt the proceedings. Last week’s ruling would seem to suggest that, short of filing bankruptcy, Spinosa is out of options in the case, now more than three years old. Not so, says Spinosa’s attorney, Mark Beebe of New Orleans-based Adams and Reese. “We still have our appeals rights,” Beebe says. “And settlement is also always an option. So Tommy’s options now are to appeal or to resolve it with KeyBank, and there are ongoing discussions with KeyBank. … It’s not over yet.” In September, U.S. District Judge James Brady issued his final judgment in favor of KeyBank, and Spinosa then vowed to appeal. The developer is now on the hook for some $114 million, based on the $86 million appraised value of Perkins Rowe contained in court records. His attorneys have challenged that appraised value, and Brady has given them a short window to submit a new appraisal. Still, even if the court accepts a new, higher appraised value for the property, Spinosa will owe the considerable difference between that and the $200 million judgment. A spokesperson for KeyBank says the bank is moving forward with the foreclosure. —Stephanie Riegel and Steve Sanoski