Summary Judgment Shuts Down Investor Claims Against Lawyer Arising From Failed Condo Conversion
Joe Kingma had his motion for summary judgment granted on July 26, 2012 in the State Court of Chatham County. Plaintiffs were wealthy investors from Savannah who helped to fund the acquisition and development of several buildings in downtown Savannah. While the project was initially successful in selling units at New York City prices, it eventually failed in the teeth of the real estate slump, and millions of dollars in investor money was lost. In separate actions the investors sued the managing members of their LLC, the LLC itself, the LLC’s contractor, and the LLC’s lender. The lender failed and was taken over by the FDIC, and the contractor filed for bankruptcy, although some of that litigation continues.Joe filed a motion contending that while his law firm client had represented the LLC which did the development and had drafted the organizational documents for one of the plaintiff investors, they owed no duty to the investor plaintiffs. The trial court agreed and granted the motion for summary judgment.While this case may be subject to appeal, for now all of plaintiffs’ claims are denied. Stay tuned for further developments.