Last week, our partners Julian Ellis and Ed Gleason secured a significant victory before the Colorado Court of Appeals on behalf of a group of property owners in Colorado Springs, reversing an adverse summary judgment order in favor of a large national bank.
The case involves construction loans where the bank authorized and directed loan draws to a builder who, unbeknownst to our clients, had a troubled financial history. As alleged, the bank knew or should have known about the builder’s background when it encouraged the property owners to retain him to build their dream homes. The builder later defaulted, declared bankruptcy, and was criminally prosecuted for misappropriating our clients’ funds—causing substantial harm to both the clients and their projects.
The Court of Appeals reversed the trial court’s order and remanded the case for trial. We look forward to continuing to advocate for our clients at trial later this year.
Read Opinion Here: Schmitz v. BBVA Opinion