Perkins Rowe lender argues against tossing foreclosure suit

In the latest court filing in the Perkins Rowe foreclosure proceeding, KeyBank National Association—the main lender on the mixed-use development—argues that the foreclosure lawsuit filed in late July should not be dismissed from federal court. The filing comes in response to a motion filed earlier this month by Perkins Rowe, arguing the case should be thrown out of federal court because of a lack of “true diversity”—geographic, not racial—among the plaintiffs in the case. Citing the participation of Bank of New Orleans as one of the lenders in the consortium, the Perkins Rowe motion suggests the foreclosure suit should be remanded to state court. But in its answer to the motion, KeyBank argues that Bank of New Orleans is just one of eight institutions in the consortium of lenders and has but a 0.58% stake in, or just $1 million, of the $170 million construction loan. “BNO is neither necessary nor indispensable to the litigation,” the lawsuit says. “BNO does not have the power under the loan document to pursue this foreclosure action.” Attorneys for both sides have declined to comment on the ongoing litigation.—Stephanie Riegel