Developer sues over deposit after property deal falls through

By Kyle Barnett | Sep 19, 2012

Lance C. McCardle

NEW ORLEANS – A real estate developer is suing a company it was buying a property from after the deal fell through and their deposit on the property was not returned.

Stirling Properties, LLC filed suit against Dreammation EFX studios and Askenazy Acquisition Corporation in the Orleans Parish Civil District Court on Aug. 2.

Stirling claims in October 2002 it deposited $160,000 in earnest money in an escrow toward the purchase price of a property owned by the defendants. The plaintiff alleges that when it pulled out of the property deal it should have received a refund in the full amount deposited. Stirling Properties asserts, despite multiple claim letters, it has not received the return of the deposit. The escrow agent allegedly has no position on who the money belongs to.

The plaintiff is seeking leave of court to have the money deposited in the registry of the court and relieve the escrow agent of its duties.

Stirling is represented by Lance C. McCardle of Fishman, Haygood, Phelps, Walmsley, Wilson & Swanson, LLP of New Orleans.

The case has been assigned to Division D Judge Lloyd J. Medley.

Case no. 2012-07546.

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