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Home New Cases DRO 15R Seeks to Subordinate the Claims of Metropolitan Mortgage Company, LLC

DRO 15R Seeks to Subordinate the Claims of Metropolitan Mortgage Company, LLC

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May 08, 2022, Southern District of Florida – DRO 15R, LLC (“Debtor”) files a complaint against Defendant Metropolitan Mortgage Company, LLC (“MMC”) and Defendant RO 15R, LLC (“RO15”) to determine the validity, priority and extent of liens on Debtor’s property and for equitable subordination of MMC’s claim.  

The complaint alleges a line of events that gave rise to this adversary proceeding. It alleges the following. In 2013, Drexel Avenue, LLC purchased a property in Miami Beach, Florida. In 2015, RO15 was organized to handle the renovation of the purchased property. In 2018, DRO was organized for the purpose of facilitating transactions concerning the Property. In November, 2020, Drexel executed a “quit claim deed” in favor of DRO. On December 1, 2020, RO 15 caused a “Claim of Lien” to be recorded on the property in the amount of $8,785,000.00 to protect itself for sums advanced for improvements to the property. However, MMC also claims a “first-priority lien” on the property in the amount of $1,150,000.00 in connection with alleged mortgages recorded in 2018, 2019 and 2020. 

The Debtor claims that none of MMC’s mortgages “existed at the time of the filing” of the “Notice of Commencement” recorded on September 9, 2015 and therefore it contends that RO15 lien on the Property is “superior to the mortgage liens” in favor of MMC. The Debtor requests a declaratory judgment to this effect. It also contends that MMC has “conspired” with Ajar and the Conservator in the State Court Action “to cause substantial harm” to the Debtor and requests the Court to subordinate MMC’s secured claim to the claims of all the Debtor’s creditors.

The case is DR0 15R LLC v. RO 15R LLC, et al. (In re DRO 15R LLC), AP No. 22-01154, US Bankruptcy Court for the Southern District of Florida.

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