Real estate company asks to be released from responsibility of $50K deposit dispute

NEW ORLEANS – A real estate company is asking a New Orleans court to take charge of a $50,000 deposit it is holding after a real estate deal fell through.

GBS Properties LLC, formerly Prudential Gardner Realtors, filed suit against Regions Bank of Alabama, and Mary Mason Crosson of Texas, in the Orleans Parish Civil District Court on Dec. 13, 2013.

According to the suit, Gardner Realtors was the broker for Eleanor Farnsworth, a listing agent in the attempted sale of 2507 Prytania St. of New Orleans. On Aug. 22, 2008 Regions Bank and Mary Crosson came to a buy or sell agreement, with Crosson as the buyer. The buyer’s agent, Brigitte Fredy, delivered a $50,000 deposit, to be held in escrow by Gardner. Closing took place on Sept. 8, 2008, but Farnsworth was informed that Crosson would not be going through with the sale. Now, both Crosson and Regions have allegedly made requests that the deposit funds be released to them, therefore Gardner considers these funds to be in dispute.

Gardner asked that the funds be deposited into the registry of the court, less the costs of filing and to be dismissed from further proceedings.

Judge Tiffany G. Chase on Dec. 13 ordered the $50,000 less costs to be deposited and the defendants cited to appear and assert their respective claims. Chase also dismissed Gardner from the case.

Regions answered the suit on Feb. 11, stating that Crosson failed to buy the property on Sept. 15, 2008, as she was obligated to do. The "Agreement and Counter Offer" dated Aug. 22, 2008 stated that Crosson agreed to buy the property for $1.6 million and to close before Sept. 8, 2008. The agreement was not subject to satisfactory inspection and was to be purchased on a “as is, where is” basis. Regions argues that the contract entitles them to 10 percent of the purchase price, which is $160,000 and also to retain the $50,000 that is being held.

Regions is represented by Daniel K. Rester of Adams and Reese LLP of Baton Rouge.

The plaintiff is represented by Jack A. Ricci of Ricci Partners LLC of New Orleans.

Case no. 2013- 11904.