Featured News 2012 Million Dollar Oregon Real Estate Lawsuit Finally Reaches Settlement

Million Dollar Oregon Real Estate Lawsuit Finally Reaches Settlement

For a year, ex- Portland Trail Blazer and Governor of Oregon Chris Dudley and Avia footwear founder Jerry Stubblefield have been battling back and forth, trying to obtain the only island estate on the Oswego Lake in Oregon. The two met in a settlement conference in March of 2011, and the case was finally dismissed on May 17th, 2012. Dudley loaned Stubblefield a whopping $3.75 million in June 2009. The loan was completed through his company, Tesoros de Oswego. At the time of the loan, Stubblefield put his beautiful 13,500 square-foot home on the Oswego Lake up for collateral for the 7 percent interest rate on the loan. The home, a stunning piece of stone architecture with turrets, is the only occupied household on the lake.

The house is something out of a fairytale, dotted with cobblestone and red rooftops. The landscape is complete with a large dock for boats, spires on the roof, and gardens that complement the breathtaking view. When Stubblefield put his house up for collateral, HSB Bank USAS filed a $1.5 million foreclosure lawsuit against him for failing to pay the mortgage. At the time, Stubblefield’s attorney said he had no doubt that the foreclosure would eventually be dismissed. HSB Bank USA also went after Dudley’s loan company and the Lake Corporation.

In a counter lawsuit Stubblefield filed a million-dollar lawsuit against Dudley. He alleged that the older gentleman tried to change the term of their agreement in an attempt to collect another $1 million. According to the contract that they had agreed on, Stubblefield was supposed to repay the debt from Tesoros de Oswego on December 1, 2010. He was given a 1-day grace period. The contract called for a prepayment of $1 million if he chose to pay the loan between December 2010 and February 2010. The loan also listed a random fee of $500,000 if the debt was repaid between June and November 2009. There was a $750,000 tacked to the transaction if it was paid between December 2009 and February 2010.

On December 6, 2010, Dudley sent a notice to Stubblefield that he owed about $4.8 million. Stubblefield disputed that extra $1 million in a lawsuit, and said that he aimed to repay $3.8 million instead. Dudley would not accept the new offer, saying that it was not a full and just payment. This caused the deadline for the loan to pass, and Dudley declared that Stubblefield had defaulted. At this point, Dudley set about securing the house that had been held up as collateral. At court hearings on the fees, which occurred in January, Dudley said that the expenses were part of a buyout clause and weren’t at all related to the 10-day grace period. Dudley’s attorney said that he had borrowed the money which he had lent to Stubblefield at a 7 percent interest rate and that the extra fee was Dudley’s profit for the transaction.

The complicated and serious case has caused serious division over the property. Some parties involved are worried that the home will eventually go to the bank for foreclosure. If you are involved in a lawsuit over property, or are worried about the threat of foreclosure on your home then it might be best to set up a lawsuit against the company that is seeking your property. You will certainly want a real estate attorney on your side, especially if a bank or another creditor comes after your home. Contact a reliable and aggressive lawyer today so that you will get the help you need to try to receive the results that you want.

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