Has anyone litigated against Whitestone Development

Question

Hi all,

I've been going through a new build in Cape Coral with Whitestone Development which started in November 2021 and is still incomplete! They have completely mismanaged the budget and have not completed jobs in which they received funds from the lender as well as myself.

I know a lot of people have gone through the same thing with them and am just wondering if anyone has had success taking them to court. Has anyone actually got anything back?

Thank you in advance!

John

Chris Seveney · Answer

We were a lender on a deal where they were the contractor, and it's my understanding they are out of business. Typically, when a GC goes out of business, there's really not much to go after, as they typically are completely mismanaged and use what I call bucket accounting. Bucket accounting is taking money that comes in and allocating it to whatever project needs the funds, not the actual project that it's supposed to be going to.

I know of one GC who has taken over some of their projects. They are not cheap and will not get it done, most likely, for what was left in the schedule values, but it at least gets the project done.

John Santos · Answer

That's what I suspected. Just trying to get it sold for what I owe the bank at this point. Thanks for the info Chris!

Has anyone litigated against Whitestone Development

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