November 2019

Affordable Housing Nonprofit Defeats Claims Brought by Construction Company

North America - United States | North America | United States - Minnesota

A nonprofit organization dedicated to developing affordable housing in Minnesota successfully defended against claims of breach of contract, foreclosure of a mechanics lien, unjust enrichment, misrepresentation and tortious interference brought by a construction company. Our firm represented the nonprofit in the lawsuit.

The nonprofit obtained financing for and begun the construction of an affordable housing project in Minneapolis. The construction company alleged that it is entitled to over $900,000 in fees for assistance it alleges to have provided in the preconstruction development of the project and brought a motion for temporary injunction to stop the project. The nonprofit denied that it owed the construction company anything. The nonprofit has also asserted a slander of title counterclaim against the company for malicious and wrongful inclusion of the $900,000 of fees in the sum of the mechanics lien that it filed against the project’s property.

Our firm successfully had the motion to enjoin the project denied, which facilitated the completion of the affordable housing, and obtained a summary judgment dismissal of all of construction company’s claims.

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