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Appellate Judges Clear Way for Investor’s Continued Legal Action Against TD Bank

MIAMI, Fla, December 5, 2017 – In a 7-to-3 ruling, Florida’s Third District Court of Appeal denied a motion by TD Bank, N.A., to rehear its case asking for the dismissal of claims by MP, LLC, that contend that the bank knowingly aided and abetted others in conspiring to shut Waldman Barnett client MP out of its investment in a lucrative office park and boosted its loan portfolio during its purchase of Mercantile Bank in 2010.

Specifically, MP alleges that TD’s predecessor, Mercantile, colluded with four of MP’s co-investors to use Palmetto Gardens Industrial Park’s income as collateral for nonperforming loans held by the investors of other warehouse parks, which were the largest loans in Mercantile’s Florida portfolio. MP’s lawsuit asserts that documents were altered to make it appear that MP was not a member of the LLC that held the profitable warehouse park. This enabled the cross-collateralization of these properties, to which MP would never have agreed. Furthermore, it is alleged that TD then conspired to manufacture a technical default of the existing loans to execute a short sale at a below-market price, where MP and another partner were willing to pay more for the office park, resulting in a multimillion-dollar loss for MP.

“Now that TD’s latest barrier has been removed, we are looking forward to pursuing the last party in this prolonged saga and for TD to have its day of reckoning, as we’ve successfully done with all the other defendants in this case,” said Waldman Barnett’s Glen Waldman, who was joined on the case by Waldman Barnett partner Jason Gordon.

The team will pursue TD Bank on counts of violation of Florida’s Racketeering and Influence Corruption (RICO) Act, civil conspiracy and aiding and abetting a breach of fiduciary duty.

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