Lending Bank’s Involvement in Marketing Developer’s Property is Questioned

Case Overview

This case takes place in Florida and involves a bank that was promoting a property with an appraisal value of $21,000,000, (it had provided funding for to prospective investors. A developer secured financing from a bank to purchase a piece of property. The developer planned to build a resort on the purchased property. In order to complete these plans, however, the developer looked for investors. Construction and maintenance was scheduled, as the land was essentially bare, lacking any roads, curbs, and sewers. The bank, in order to help promote the property for the developer, showed up and participated in real estate marketing events. When the development did not occur, the investors brought suit against the developers. The plaintiffs (the potential investors alleged that, in addition to the developer, the bank should be a defendant because it had been particularly active in the marketing and promotion of the property. The plaintiffs argued that the bank had become an agent of the developer, and thus, a part of the suit.