A lawsuit filed by a New York firm claiming breach of contract involving a commercial construction loan rejection is being disputed by Bethpage Federal Credit Union.
Liberty Meadows of Hauppauge, N.Y., and its managing members Demetrius A. Tsunis and Enrico Scarda, filed a suit Wednesday in the New York Supreme Court in Suffolk County alleging breach of contract, fraud and negligent misrepresentation regarding a rejected loan from Bethpage to finance townhouse condominiums for senior citizens.
In the suit, the plaintiffs alleged that the credit union committed to making a condo development loan however, the funding was not approved by the loan committee. Due to the rejection, the plaintiffs said they experienced financial losses because the project was put on hold for 15 months.
Kirk Kordeleski, president/CEO of the $4.5 billion Bethpage, said the suit is without merit and the credit union will appeal. After a comprehensive review, Bethpage made the decision not to move forward with approving the loan, he added.
Kordeleski said he was surprised to hear about the lawsuit filing since the credit union had been in ongoing talks with all the parties involved.
Referring to a May 2 article on the Long Island Business News website, Kordeleski disputed claims from the Liberty Meadows plaintiffs’ attorney saying Bethpage may have been close to reaching its member business lending cap.
While Bethpage said it is at 65% of its MBL cap and will reach its limit over the next three years, Kordeleski said the limit did not have an impact on rejecting Liberty Meadows’ loan request.