You are viewing this article in the archives. For the latest breaking news and updates in Ann Arbor and the surrounding area, see
Posted on Mon, Oct 5, 2009 : 2:53 p.m.

Attorney: $3.9 million lawsuit against Rich Rodriguez should be dismissed

By Dave Birkett

Michigan football coach Rich Rodriguez has asked a South Carolina judge to dismiss the $3.9 million lawsuit filed against him over a failed real-estate deal.

Hamilton Osborne, Jr., Rodriguez’s attorney, filed a motion in U.S. District Court Monday asking that Nexity Bank’s complaint against Rodriguez be adjourned because it was filed in the wrong jurisdiction.

The motion does not otherwise address the substance of the suit, that Rodriguez and four business partners defaulted on a loan to build high-end condominiums overlooking Virginia Tech’s Lane Stadium.

Osborne twice hung up on reporters seeking comment in recent days, and Rodriguez’s financial advisor, Mike Wilcox, did not return a phone call Monday.

Rodriguez was part of the investment group The Legends of Blacksburg, LLC, that obtained a $26.1 million loan in September 2007.

The loan was modified in 2008 to the principle balance of $3.6 million, the cost of the land, and Rodriguez’s group defaulted on it in May without breaking ground on construction.

Wilcox said previously that Rodriguez was the victim of a real-estate ponzi scheme. One of Rodriguez’s business partners, Clegg Lamar Greene, is awaiting trial in South Carolina on five counts of fraud for allegedly stealing money from the group for cosmetic surgery and other personal use.

That trial has stalled because the 71-year-old Greene is in poor health.

In this case, Nexity Bank named Rodriguez as the lone defendant because he was “the financial strength behind the loan,” Nexity attorney Wes Few said last month.

Rodriguez will make about $2.5 million this year as Michigan's coach, plus a bonus of at least $50,000 if Michigan (4-1) makes a bowl game.

In his filing, Osborne said the lawsuit belongs in a Virginia court.

“Their response has nothing to do with the merits of whether or not the money’s owed," Few said Monday. "They want to force the bank to fool around with delay motions and file another suit in Virginia, which we’ll do that. We want to get a result as quick as we can."

Dave Birkett covers University of Michigan football for He can be reached by phone at 734-623-2552 or by e-mail at Follow him on Twitter @davebirkett.



Wed, Oct 7, 2009 : 1:32 a.m.

It was "Speculative Real Estate", and RR lost his butt on the deal. That's the problem with gambling, sometimes you go all in and Loose. Now pay back the money Rodriguez. What do you think the bank should just ABSORB the money they lent you? maybe a government bailout? hows about the people who bank at Nextity bank each just chip in a few bocks to cover the cost? Ill bet if the Blacksburg condo was a success Rodriguez would expect HIS money wouldn't he? Pay the money Rich, You owe it, now you pay it!


Tue, Oct 6, 2009 : 9:45 a.m.

This is confusing. Did Rodriguez' attorney request an adjournment or move to dismiss the lawsuit for lack of proper jurisdiction? Or did Rodriguez' attorney request that the court adjourn the filing of an answer so that the court could hear a motion to dismiss the complaint for lack of jurisdiction? A case may be adjourned without being dismissed; a dismissed case can't be adjourned.


Tue, Oct 6, 2009 : 9:26 a.m.

This has to be financialy tough on the RR family. He hasn't sold his home in Morgantown, he has the buy out to pay for, the expense of living in AA and now this. Hopefully a booster will step up and offer assistance so he won't become distracted this year like he did last year.

03 Blue 07

Mon, Oct 5, 2009 : 11:18 p.m.

RedCeder: please see Federal Rule of Civil Procedure 12(b). Thank you. -- Intelligence.


Mon, Oct 5, 2009 : 5:51 p.m.

This will drag out much longer than the buy out did. We are looking at years. Unfortunatly, RR seems to hire bafoons for lawyers, so he will probably end up paying some sort of settlement.


Mon, Oct 5, 2009 : 2:21 p.m.

this isnt newsworthy.....he got scammed and someone wants to make him the fall guy cause he makes the most money....typical greed in america on display