Court Says Environmental Testing Costs Not Recoverable in Foreclosure Dispute

摘要

Environmental testing conducted to ensure that a building in foreclosure was safe for a day care center falls outside of the scope of an indemnity agreement between the property owner and its mortgage lender, the U.S. Court of Appeals for the First Circuit has held (VFC Partners 26 LLC v. Cadlerocks Centen- nial Drive LLC, 2013 BL 312398, 1st Cir., No. 13-1128, 11/12/13). The testing costs incurred by the lender's trustee are not recoverable because the agreement only provides indemnification for costs incurred by a third party, the court said in the Nov. 12 decision.