Miami Beach Hotel Says Loan Servicers Cost It $899M

Law360, New York (October 28, 2011, 11:09 PM EDT) -- Hotel owner Philips South Beach LLC on Thursday sued Wells Fargo Bank NA and Midland Loan Services Inc. for $899 million for allegedly improperly servicing a mortgage on a Miami Beach hotel and disclosing confidential financial information to the hotel's competitor.

In a complaint filed in New York state court, Philips says Wells Fargo, Midland and special servicer LNR Partners LLC disclosed confidential information when they assigned a portion of the loan to a real estate investment fund and regularly applied funds toward debt services instead...
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