Perkins Rowe attorneys seek to dismiss foreclosure

Attorneys for Perkins Rowe have filed a motion to dismiss the foreclosure lawsuit that was filed against the mixed-use development earlier this year by a consortium of lenders. The motion argues that the suit should be thrown out of federal court on the grounds that there is a lack of true diversity among the plaintiffs in the case. The motion is referring to diversity of citizenship and essentially means there allegedly are not enough out-of-state plaintiffs among the consortium of banks involved to give the federal court jurisdiction over the case. The suit acknowledges the right of the lenders to pursue remedies in state court. Foreclosure proceedings were initiated against Perkins Rowe in late July by a group of lenders led by Ohio-based KeyBank. In the lawsuit, the banks claim the development and its developer, Tommy Spinosa, haven’t paid on $170 million in construction loans since last October. Since the foreclose suit was filed, court records indicate several status conferences have been held and the two sides have appeared to be cooperating. This latest motion, however, is the first real challenge to the foreclosure suit. Attorneys for both sides did not return calls for comment. But sources familiar with the case suggest the motion could be nothing more than a stalling tactic, and point out that Perkins Rowe would stand to gain very little by having the case transferred to state court.—Stephanie Riegel