Builder In Foreclosure Sues Bank Alleging Conduct That Doomed 4-Unit Development

In Holmes Beach, Florida, the Sarasota Herald Tribune reports:

• First Priority Bank, the region's most troubled community bank, has been hit with a lawsuit alleging that mismanagement and false statements on the part of its employees doomed a Holmes Beach condominium development. The lawsuit, filed by Ohio developer Benton Benalcazar in response to First Priority's Feb. 28 foreclosure action, states that bank managers not only delayed the construction of four, 2,400-square-foot condominium units, but they actually tried to sell the property to other customers long before Benalcazar defaulted on his company's $1.7 million loan.

For more, see Customer sues First Priority Bank (Developer Benton Benalcazar accuses the bank of delaying work on his project, then trying to sell it).