A group of Chocolate Drop development property owners have sued developers claiming that LGI Land sold them property that is not buildable.
The suits were filed in Polk County Civil Court on March 15 by seven property owners, all represented by King Law Offices out of Forest City. The property owners include Michael Medina, Jeffrey A. Snyder, Corey Hollander, Ernest E. Lambert, Eva Cruz, Arick G. Auyang and Christopher Ray Torres.
Just last week, some of the developments roads were closed by Columbus due to erosion issues and no building permits have been issued by the county due to dangerous conditions.
“The defendants used their position of trust and confidence to induce plaintiffs into purchasing properties that were not suitable, marketable and builable,” the lawsuits state, “to the benefit of the defendants.”
The claims in the lawsuits, all filed individually, include breach of contract, negligence, negligent misrepresentation, unfair and deceptive trade practices, fraud, constructive fraud, private nuisance and disregard of corporate entity of affiliated company.
Some of the facts listed in the lawsuits include that the property owners received letters in 2008 from the Town of Columbus advising that their lot was “eroding and causing sedimentation.”
The suits also say the town has suspended granting any building permits on any of the plaintiffs lots in Chocolate Drop, “due to dangerous conditions caused by eroding and harmful sedimentaion in local waterways.”
Columbus closed the road into the subdivision, located off Houston Road, last week to ensure public safety. Town officials said the town is concerned about the stability of a portion of the roadbed due to severe erosion of the adjoining slope. The main road is covered with several inches of mud and at a higher elevation, a section of road is eroding and sliding down a steep slope, according to town officials.
LGI Land, out of Texas, began selling lots at Chocolate Drop in 2007 and sold out by early 2008, shortly before the real estate market collapsed. No houses have been built in the subdivision yet, due to no building permits being issued. A few of the property owners are trying to sell their lots.
The development has other lawsuits from nearby property owners who claim erosion and silt damage from the subdivision. LGI is also facing erosion control violations from the N.C. Department of Environment and Natural Resources (DENR). Last year the state fined LGI $116,000 for not properly stabilizing slopes and not producing a geotechinal report. DENRs Rick Allred, who handles violations in Polk County was not available as of press time yesterday to give an update of LGIs recent compliance and/or violations.
LGI also has a pending lawsuit against the Town of Columbus, which claims that the town promised to take over maintenance of the roads and failed to do so.
The lawsuit against Columbus claims that the town, by the acts, representations or admissions of its representatives and employees, “induced LGI to make substantial expenditures to construct the roads to meet the standards of the N.C. Department of Transportation” and to complete the required paving. “The town expressly and/or impliedly promised to LGI that the required paving needed to be completed in order for the town to accept permanent maintenance,” states the lawsuit.
Columbus Town Council denied taking over Chocolate Drops roads early last year. Council members said at the time they werent sure if the subdivisions roads were stable. The town had previously, in 2007, accepted the roads for maintenance with a one-year warranty period.
The property owners who filed suit say they paid between $109,000 to $259,000 for the lots. LGI will have 30 days to answer the claims against them from the property owners. LGIs attorney, Brian Pearce, with Nexsen Pruet Law Firm out of Greensboro, was unavailable for comment on the lawsuits as of press time yesterday.