Diversified Field Solutions Sues Bank Of America

Posted by Orb Staff on June 22, 2010 No Comments
Categories : Mortgage Servicing

eys for Diversified Field Solutions Inc. (DFS), a provider of property preservation services, say they have filed a lawsuit against Bank of America alleging breach of contract and fraud. According to California-based law firm Burkhalter Kessler Goodman & George (BKGG), Bank of America contracted with DFS to render property preservation services to the bank's foreclosed properties in 14 states. DFS alleges that it has been damaged by the bank's failure to uphold terms of the contract. Based on the scope of the contract, DFS invested nearly $2 million of its own resources in preparation to perform its obligations under the contract, BKGG says. However, it is alleged that Bank of America failed to allocate the work to DFS that was promised, thereby resulting in financial losses to DFS and, ultimately, ‘devastation of the company,’ BKGG says. DFS is also alleging that the bank damaged DFS' reputation by sending erroneous instructions to DFS to enter a home that was already resold and occupied by the new owner. In the resulting news coverage, Bank of America blamed DFS for the error and halted all further work assignments, the field services provider says. DFS says it has since been forced to lay off nearly all of its office staff and is no longer able to provide jobs to more than 300 of its field workers. "Banks are required by law to prevent foreclosed homes from becoming blights to their communities,’ says Taymor Niazi, senior vice president of DFS. ‘They hire small companies like ours to do the actual work needed to comply with this requirement. But in doing so, [Bank of America] has ignored the terms of its own contract to the detriment of our business and workers." SOURCE: [link=http://www.bkgglaw.com]BKGG

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