Rodriguez: Lawsuit filed in wrong state

Updated: October 5, 2009, 6:27 PM ET
Associated Press

COLUMBIA, S.C. -- The federal lawsuit filed against Michigan coach Rich Rodriguez in South Carolina over a defunct real estate deal should be tossed out and refiled elsewhere, the coach argued in federal court documents filed Monday.

The multimillion-dollar lawsuit should be argued in federal court in Virginia, where the property in question is located, an attorney for Rodriguez said in a motion requesting that the South Carolina case be dismissed.

In September 2007, when Rodriguez was still coaching at West Virginia, a Spartanburg, S.C.-based bank loaned the coach and his partner more than $26 million to build condominiums overlooking Virginia Tech's Lane Stadium. But as the 80-unit project struggled amid the economic downturn, that amount was later amended to about $3.63 million, the cost of only the land itself.

Earlier this year, an Alabama bank with an interest in the loan sued Rodriguez in South Carolina, saying the coach owes $3.9 million -- the land cost, plus interest and fees -- for defaulting on the loan.

Rodriguez's attorney contends the case should be moved from South Carolina because the state has no real connection to the loan as it stands now: Rodriguez lives in Michigan; Nexity Bank, which currently holds the loan, is in Alabama; and the property in question is in Virginia. Banc Capital, the bank that loaned Rodriguez the money, is not part of the lawsuit.

Attorneys for Nexity did not immediately return messages seeking comment Monday.

Questions have also swirled surrounding Rodriguez's partner in The Legends of Blacksburg venture.

Banned Clemson University booster Clegg Lamar Greene of Clemson, S.C., was arrested Dec. 29 and charged with multiple counts of breach of trust.

The South Carolina Law Enforcement Division says Green is accused of pilfering thousands of dollars from Palmetto State Enterprises LLC between 2005 and 2007 to pay debts on various business deals, buy furniture and have cosmetic surgery.


Copyright 2009 by The Associated Press

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