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Court: Lehman lawsuit against appraiser is too little, too late
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Wednesday, August 20, 2014
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A lawsuit filed by global financial services firm Lehman Brothers Holdings Inc. (LHBI) against a Florida appraiser nearly four years after it declared one of the largest bankruptcies in American history is too little, too late, as a circuit court recently affirmed a lower court’s decision that the company’s filing exceeded the Sunshine State’s four-year statute of limitations.
LHBI had argued that a 2006 appraisal by Barbara Gayle Phillips, a licensed appraiser in Florida, was at least $300,000 off its true value — but by waiting until 2012 to file its lawsuit, LHBI missed Florida’s statute of limitations for negligence actions.
The case, Lehman Brothers Holdings Inc. v. B.G. Phillips and Tristate Appraisers LLC (U.S. Court of Appeals, 11th Circuit No. 13–14782), began in March 2006, when Phillips conducted an appraisal of property in Panama City, Fla., which valued the property at $1.2 million and secured two mortgage loans, one for $960,000 and the other for $120,000. These two loans then were sold on the secondary market to Lehman Brothers Bank, a subsidiary of LBHI, and then to LBHI in May 2006. LBHI, in turn, sold the first mortgage to SASCO and the second mortgage to CitiMortgage.
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