The Virginian-Pilot
©
NORFOLK
A federal judge Thursday denied a move by developers Steve and Art Sandler to have a $21 million lawsuit against them thrown out of court.
U.S. District Judge Robert G. Doumar also ordered the Sandlers and their company, L.M. Sandler & Sons Inc., to open all of their financial records for review by the insurance company suing them.
The Sandlers were among the area's biggest developers, but after branching out to other states along the East Coast, they struggled in the recession.
Travelers Casualty and Surety Co. of America sued the Sandlers and their company for payment on bonds issued to ensure the completion of public infrastructure work on a number of developments.
The Sandlers asked the court to dismiss the suit, arguing they have no obligation under their contract with Travelers to pay. Doumar disagreed.
"You're in pretty bad shape," Doumar told a lawyer for the Sandlers.
The judge ordered the Sandlers to respond to the suit within one week and ordered another hearing in two weeks to address how much collateral the Sandlers should post to cover the bonds.
"I don't want to waste any more time," the judge said.
Travelers filed the suit in January after a number of municipalities, including Virginia Beach, called the bonds after development halted because of the depressed housing market.
Tim McGlone, (757) 446-2343, tim.mcglone@pilotonline.com
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What goes around, comes around
The sad part is trying to wiggle out of a debt by sending in a lieawyer to state they don't have to pay it back. I guess they think they are so wonderful that insurance companies just give them $ 21 million for their charming smiles?! Hmmm, something smells
"Good people." "Civility and decency."
I'm sure these terms are appropriately applicable to the Sandlers.
However, these terms also apply to ANYONE in business who signs a legal contract and is then unable to abide by its terms. There are a LOT of "good people" facing financial devastation because of the recession.
The Sandlers are accomplished businessmen who should be held responsible for their decisions and financial obligations, their charitable contributions nothwithstanding.
I don't think it's fair to say, "The real culprits are the politicians ... "
No politician held a gun to their heads and forced them to sign these contracts. They did so willingly in hopes of making money.
Hopefully, Judge Doumar will rule fairly and with "civility and decency" in their case.
"The Sandlers are
"The Sandlers are accomplished businessmen who should be held responsible for their decisions and financial obligations, their charitable contributions nothwithstanding."
I wouldn't go that far to call them accomplished" They are Norfolk's version of the Kennedy's. Everything they have is because of their dad's accomplishment.Without his hardwork and money,the brothers would have had nothing.
boomerang
Shootz, I hope you can get to a point in life where you have compassion for your fellow man; I can't imagine what must have happened in your life that would allow you to revel in the misfortunes of others. The Sandlers are no different from countless others who got caught in the great real estate depression of 2008. The real culprits are the politicians who created the Fannie/Freddie mortgage mess which has had a devestating effect on millions of us.
Well Said Boomerang
We'd all be better served with a little more compassion and a lot less negativity.
Sandler brothers
The Sandler brothers are just like all the other real estate/brokerage firms out there that went for the most profit and then the market fell through on them.
Obviously they bit off more than they could chew and now they have to pay for it. Sorry guys - you deserve what you get. How does it feel with your ivory towers crumbling?
This Recession Has Wiped Out A Generation Of Family Businesses
The Sandler situation is just on a grand scale as compared to most.
This family has donated both time and money to charity on an unparalleled level locally and elsewhere.
I'm proud to say that I have known both of the brothers for over 50 years . They have families like most of us and that calls for some civility and decency just as most of us would hope for if this was happening in our lives. Try taking the high road with your comments.
Nothing personal...It's business.
Referring to the Sandlers as
Referring to the Sandlers as "financially troubled" is like referring to Beethoven as "musically challenged."
The newspaper continues to pursue some sort of grudge against them. Of all the businesses in Norfolk that have ever been in the news, when have you ever seen the names and personal information of the owners published?
The newspaper once posted the Sandlers' neighborhoods and the value of their homes... Makes you wonder what's this really about?
It was Judge Doumar
who said they were in bad shape, not the press.
Shills for Sandlers.
They are their father's sons.....
Anyone lived in the Tidewater area long enough to remember when the elder Sandler hid all tha money from the IRS in his home on Talbot Street? Don't count these two out yet.