Marina Dock Age

Two companies that renovated St. Johns Yacht Harbor in Charleston, S.C., are suing the project’s financier, alleging it knew the development was running out of money but allowed them to continue working on it, according to a May 27 report from The Post and Courier.

Crest Industries and Dock & Marine Inc. said they are owed more than $870,000 in unpaid construction bills. They are seeking to collect from National Bank of South Carolina (NBSC), which lent the marina owners money to renovate the docks and build amenities, such as a pool and restaurant.

In December 2009, the bank began foreclosure proceedings on the 225-slip Stono River marina, saying it was owed $25 million by owner Stono Marina Partners.

In court documents, the two builders alleged that the loan was “on the cusp of default” around April 2009, but the bank did not file a foreclosure lawsuit until nine months later. Also, the lender sent representatives to respond to contractor’s payment requests up until late October, even though it knew last summer that there wasn’t enough money to finish the work, according to documents.

“It’s clearly in the bank’s interest to keep these guys working because every day they keep working, it increases the value of the bank’s collateral,” said attorney Ben Peeples, who represents Dock & Marine.

NBSC attorney John Hagerty denied the allegations.

A hearing on the case was scheduled for June 1.