By Eric Hornbeck

Law360, New York (January 31, 2012, 6:50 PM ET) -- A property developer and a private equity firm blamed each other Monday for failing to live up to each other's obligations from a $42 million loan to clean up an environmentally contaminated property north of San Francisco.

The complaint involves a contaminated 86-acre waterfront property that was used by various chemical manufacturers in Richmond, Calif. The lender, affiliated with former real estate development firm Continental Environmental Redevelopment Financial LLC, said the loan guarantors, affiliates of private equity firm Cherokee Investment Partners, borrowed too much. Cherokee countered...