Construction Companies Put Liens On Property To Recoup Investments
When Chinese-based manufacturing company Lindenburg Industry bought the old Thomasville Furniture plant in Appomattox, the town was told the plant would bring almost 350 local jobs. Lindenburg Industry planned on building pollution control devices to be shipped back to China. Unfortunately for the town and investors, the company defaulted on its $859,000 loan.
The site was recently sold to a business developer out of Bedford for $1 million after foreclosure. Now, a company called Development Advisors, Inc .is looking to recoup the money from the sale by placing a lien on the property. To complicated matters, the state of Virginia also invested money in the now defunct project and looks to recoup its investment as well.
The state contends Development Advisors, Inc. did not fulfill its contractual obligations to Lindenburg Industry and has no claim to the money. As of right now, no dates have been set for litigation in the case.
A third-party, Blair Construction also has filed a lien against the property. Blair Construction seeks to recoup its $309,000 for work it did on the failed industrial project. With so many players in this case, it remains unclear who and how much money will be recovered.
Resolving business disagreements
When construction and development deals go sour, the results can mean more than just lost revenue or a failed project. The damage to a business’s reputation and losses in potential projects may be intangible. When businesses are faced with these situations, having the right legal reputation to resolve these issues expediently can mean all the difference in the world.
Taking your case to court should always be an option, but a final one when all other avenues break down. Having an experienced construction litigation can help guide their clients through alternative means of resolving disputes and still advocate for the best interest of their clients.
Some solutions to construction litigation disputes may include:
- Direct negotiations – You and your attorney can sit down with the other party and their representatives and negotiate in good faith with one another to avoid costly and time consuming litigation.
- Dispute resolution boards – Informal proceedings with non-binding recommendations comprised of neutral members may create a roadmap to resolution.
- Mediation – An impartial individual works with each side to facilitate communication between the two sides.
- Arbitration – An impartial party hears arguments from both sides and hands down a legally binding resolution. Sometimes arbitration clauses are worked into contracts from the onset of businesses dealings.
Construction litigation and dispute resolution attorneys
Whether you own a small business or are just a private citizen in a disagreement with a contractor, you may benefit from hiring an experienced construction litigation and dispute resolution attorney to help you out in your time of need. No one needs the hassle of dragging out claims or disputes in court and incurring costly legal expenses along the way.
The Leesburg attorneys of Whitbeck Cisneros McElroy, PC can help individuals not only as attorneys but third-party mediators to help both sides reach an amicable agreement. Contact our office for a consultation about your case.