Judge clears foreclosure

• By BILL LODGE
• Advocate staff writer
• Published: Nov 24, 2009 - Page: 1B

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An Ohio bank is permitted to pursue its $165 million foreclosure action against developer Tommy Spinosa and his Perkins Rowe multiuse property in Baton Rouge federal court, U.S. District Judge James J. Brady ruled.

KeyBank National Association, of Cleveland, sued Spinosa and his multiuse development in July, alleging that no payments on the debt had been received since October 2008.

Attorneys for Spinosa and Perkins Rowe asked Brady to kick the case out of federal court. Because KeyBank sold loan participations to eight other lenders, Spinosa’s attorneys argued, there could be no guarantee that the other banks  would not file separate suits against Perkins Rowe.

Brady rejected that argument in a ruling he signed late Friday.

“The loan agreement expressly contemplates that the loan would be parceled out to other lenders,” Brady wrote.

“In fact,” the judge added, “the loan agreement states that when the required lenders give consent to KeyBank’s decision to pursue default remedies, as they did here, the lenders are bound by the resolution of KeyBank’s claim.”

Brady said the agreement of Bank of New Orleans and seven other lenders to have KeyBank act as their collection agent effectively insulates “Perkins Rowe from risk of exposure to duplicative litigation.”

Laura J. Mimura, KeyBank’s  vice president for marketing and communications, welcomed the decision Monday.

“Although we do not comment specifically with respect to matters in litigation, we can tell you that we are pleased with Judge Brady’s ruling and that the case is moving forward,” Mimura said in an e-mail.

Attorneys for Perkins Rowe and Spinosa did not reply Monday to requests for comment.

Spinosa is a defendant in the case because he personally guaranteed repayment of the development’s debt, bank attorneys say in their court filings.

Perkins Rowe, which cost more than $300 million to build, opened in fall 2007 at the southeastern corner of Bluebonnet Boulevard and Perkins Road.

The 23-acre development includes more than 60 shops and restaurants. It also features office space, a movie complex, 229 apartments, 88 condominiums and two large parks.