KALKASKA -- A Kalkaska County jury ordered a local bank to pay a Williamsburg couple $400,000 after the bank allegedly failed to disclose contamination on property the couple purchased.
Larry and Theresa Lelito bought a 5-acre parcel on M-72 just west of Kalkaska from Alden State Bank in December 2003. The Lelitos later discovered it was contaminated with trichloroethylene (TCE), and sued the bank for fraud.
"The jury's verdict means everything to me," Theresa Lelito said. "I wanted justice in this case."
The Lelitos bought the parcel for $150,000 and subsequently spent $300,000 to construct an office building there. The property's previous owner told Larry about the contamination in 2006, said the Lelitos' attorney, Robert A. Steadman.
The bank maintains it never knew about the contamination, said Thomas Lane, Alden State Bank president since 2006.
"We were shocked at the verdict, to be quite honest with you," he said.
Steadman said the property's previous owner testified during trial that he told the bank about the contamination, though bank officials testified they didn't remember that conversation.
Alden State Bank foreclosed upon several properties owned by the Lelitos in 2007, including the office building and a house on M-72, and the Lelitos last week struck a deal to redeem those properties from foreclosure with the jury award, Steadman said.
The Lelitos still hope to use the office building, Steadman said. Clean water will have to be pumped in from offsite, and it's expected that the contamination could eventually dissipate, he said.
Theresa Lelito said the economy may have to rebound before they make use of the building.
The bank's attorney, Matthew D. Vermetten of the Traverse City firm Brant, Fisher, Alward & Roy, said he expected a different result after several days of testimony.
"We were very, very surprised by the verdict," he said.
