Payton & Associates, LLC
Commercial Litigation Attorneys
Miami, Florida
786-574-4943

Construction company awarded $2.5 million in business litigation

Forming a business relationship can be a profitable endeavor if things go as planned on a project. However, when a project is derailed due to unexpected circumstances, a business relationship can quickly sour in Florida or in any other state. This seems to be what happened between a construction company and the owner of a hotel, resulting in a business litigation lawsuit.

The conflict revolves around the opening of a new hotel that was created from a former warehouse that is approximately 100 years old. The hotel company had already paid the construction company over $10 million for its work on the hotel. However, the construction project was not going as scheduled, which delayed the hotel's planned opening that was supposed to coincide with a large Harley Davidson anniversary event.

The hotel owner desperately wanted to open the hotel for this particular event because the hotel was designed to be a motorcycle friendly establishment, which would have fit perfectly from a marketing perspective with the Harley Davidson event. The construction firm loaned the hotel owner $400,000 in order to attempt to open the hotel on schedule. However, the loan contract came with an interest rate of 30 percent per year and gave the construction firm the right to collect 60 percent per year after any default in payment. Unfortunately, the hotel was still not opened on schedule and the hotel owner ended up defaulting on the loan.

The construction firm filed a business litigation lawsuit in order to collect a debt which had increased to $2.5 million. The defendant attempted to argue that the high interest rate was illegal, however a judge did not agree and ordered the defendant to pay $2.5 million to the plaintiff. This case illustrates that filing a lawsuit is sometimes required in order to enforce a business debt obligation in Florida or in any other state. However, one will need to have a strong understanding of contract law as well as any other relevant laws in order to prevail.

Source: jsonline.com, Iron Horse Hotel owner Dixon ordered to pay $2.5 million judgment, Rick Romell, Aug. 29, 2013

No Comments

Leave a comment
Comment Information
Super lawyers | Harry A. Payton The Florida Board Certified | Business Litigation The Florida Board Certified | Civil Trail AV | Preeminent | Peer  Rated for Highest Level of Professional Excellence | 2018 Best Lawyers | 2018 Global Member Firm INBLF
Email Us For A Response

Contact The Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

2 S. Biscayne Blvd., Suite 2300
Miami, FL 33131

Phone: 786-574-4943
Map & Directions