Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, February 14, 1991 TAG: 9102140341
SECTION: VIRGINIA PAGE: B-5 EDITION: METRO
SOURCE: By DAVID M. POOLE STAFF WRITER
DATELINE: ROCKY MOUNT LENGTH: Medium
A. William Ferguson and his wife, Brenda, allege that Flora knew about the lien, but conspired with a business partner to conceal it from them, according to court papers.
The allegations were spelled out in a lawsuit filed this week in Franklin County Circuit Court.
In an interview Wednesday, Flora acknowledged that he accidentally overlooked the lien during the routine title search.
"But there was no conspiracy," he added.
Flora said he was to meet with his title insurance company this week to make sure the Fergusons are not responsible for paying off the lien.
In December, the Fergusons discovered they would lose their Fairway Bay condominium if they did not pay off the lien that had been attached nearly two years before they bought the property.
A foreclosure sale was called off, but the lien remained attached as part of a settlement between Flora and his title insurance company.
The lien dates to January 1985, when George W. Overby, one of the developers of Fairway Bay, put the condo up as collateral for a loan with Colonial American Bank, now Crestar.
Overby later sold the condo to his partner, David A. "Red" Dean, who sold it to the Fergusons in October 1986. The lien was overlooked in both transactions.
In their lawsuit, the Fergusons allege that Flora intentionally failed to report the lien so that the Fergusons - not Overby - would be responsible for paying it off.
The couple further alleges that Flora and Overby were "business associates."
In an interview, Flora acknowledged that he has owned real estate with Overby, but said the relationship had no bearing on the title search.
The lawsuit also seeks damages from Flora's former law firm, Cranwell, Flora & Moore.
The Fergusons own Bluewater Cruise Co., which operates the Virginia Dare riverboat restaurant at Smith Mountain Lake.
by CNB