Posted on Sunday, March 20, 2011
I. A Doral company must make monthly payments to its lender regardless of the expected outcome of its commercial foreclosure cases, the 3rd District Court of Appeal decided Wednesday.
The ruling on the cases brought by the Bank of Miami against Farah Real Estate and Investment marks the first appellate decision addressing a 2010 law forcing commercial real estate owners to continue paying lenders while foreclosure matters are pending, according to bank attorney Eric D. Isicoff of Miami.
"It's certainly a strong interim remedy that puts banks on an equal footing. That's what this legislation was meant to do," said Isicoff of Isicoff Ragatz & Koenigsberg. "While all these months are going by, in order for a borrower in a nonresidential setting to retain possession, they've got to pay."
The company managed by Farah Lamoglia obtained two mortgages in 2007 worth a combined $9.87 million for more than a half dozen warehouses and a mixed-use building. The bank sought to foreclose on both loans, and Miami-Dade Circuit Judges Ronald Dresnick and Marc Schumacher ordered the company to continue making $71,610 monthly payments.
The appellate court denied the company's petition for review "because neither Farah's payment of funds ... nor any imminent transfer of possession ... imposes a material injury leaving no adequate remedy on appeal," Judge Barbara Lagoa wrote for the unanimous panel. Judges Richard Suarez and Leslie Rothenberg concurred.
Farah's attorney, Matt E. Bales Jr. of Bales & Bales, argued the trial court judges didn't make the proper findings to support payment. He had no comment on the decision because he hadn't spoken with his client yet.
By Jose Pagliery, DAILY BUSINESS REVIEW