Anthony Ostlund takes pragmatic approach to real estate development
"Badlands Development needed lawyers who were ready, willing and able to litigate with Meridian if necessary, but also ready, willing and able to develop a more expeditious and cost effective business solution to this problem. I am proud that Anthony Ostlund could provide that service." --Norman J. Baer
Badlands Development contracted with Meridian Commercial Construction to build apartments in five different towns in the North Dakota oil fields. Meridian, in turn, hired numerous subcontractors. After spending tens of millions of dollars, Badlands had five apartment projects, some completed and some not, with more than $5,000,000 of construction liens by the subcontractors and Meridian claiming that it was still owed millions. Much of the work that had been completed was substandard. Record keeping and accounting was poor at best. Some of the apartments did not have a certificate of occupancy and could not be rented, and none of the buildings could be sold or financed due to the outstanding liens.
The easiest approach would have been to sue Meridian – but that would have resulted in a very expensive, lengthy battle during which the apartments could not be leased, the buildings could not be sold or financed, and Badlands’ investment would have sat idle. In addition, there was zero expectation that Meridian could have paid a multi-million judgment. Instead, Anthony Ostlund implemented a two-step resolution. First we negotiated a settlement with Meridian by which Meridian gave up its claim to more funds and provided limited assistance with completing some of the remaining work. Second, we negotiated directly with more than 50 subcontractors to get outstanding work finished and liens released in exchange for discounted payments.
When we were done, all of the apartments were finished and ready to be occupied and all of the liens were released.
Badlands Development II, LLC
The Bakken – North Dakota