KeyBank Had No Duty To Report Borrower's Woes: 5th Circ.

Law360, New York (March 9, 2012, 5:36 PM EST) -- KeyBank NA had no duty to alert condominium buyers to the financial woes of a developer it lent money to, because the bank had no legal contract with the buyers, the Fifth Circuit said Thursday in upholding a lower court’s ruling.

The Ohio-based lender made a $170 million loan to Perkins Rowe I LLC and Perkins Rowe Associates II LLP for construction of their eponymous Baton Rouge, La., retail and residential project, which the lender ultimately foreclosed on. The project's troubles prompted irate buyers to seek...
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