Tampa, Florida, July 25, 2025
News Summary
Valley National Bank has filed a lawsuit against Burr & Forman, alleging legal malpractice related to a $15 million loan to University Village in Tampa, Florida. The bank claims the law firm failed to provide adequate legal guidance regarding Florida regulations, leading to significant issues for the senior living facility. The lawsuit comes after the bank’s previous settlement of $3.2 million to address ongoing legal disputes from the loan. As the case unfolds in court, the legal and financial implications for both parties remain to be seen.
Tampa in the Spotlight: Legal Trouble Unfolds for Valley National Bank
Last week, a significant legal drama unfolded involving Valley National Bank, a New Jersey-based financial institution, and Burr & Forman, a law firm located in Birmingham, Alabama. The bank has initiated a lawsuit against the law firm, claiming legal malpractice linked to a troubled $15 million loan that was granted in 2014 to University Village, a senior living center situated in Tampa, Florida.
A Bumpy Road: The Background
The saga began when Valley National Bank extended a loan to University Village, which was meant to support its operations as a senior living facility. However, things quickly soured. Over the past decade, University Village has faced serious financial setbacks, having gone through two rounds of bankruptcy. Additionally, accusations of fraud and mismanagement have plagued the facility.
As time went on, the bank found itself in a tough position, ultimately settling a related legal dispute earlier this year. In February, they paid out $3.2 million to resolve some of the ongoing issues stemming from the loan.
The Allegations Against Burr & Forman
Valley National Bank’s lawsuit against Burr & Forman focuses on the claim that the law firm failed to provide proper legal guidance regarding key regulations. Specifically, the bank asserts that it would never have finalized the loan if it had been fully informed about the violations of Florida law committed by Westport Holdings Tampa, the owner of University Village at that time.
To add to the complexity of the situation, an attorney from Burr & Forman who assisted with advising the loan later acknowledged that he lacked adequate legal expertise concerning Florida’s laws on continuing care facilities. This revelation has raised serious questions about the legal knowledge provided to Valley National Bank during the loan acquisition process.
What’s Next?
The legal dispute was filed in a Florida court and is expected to unfold as both sides present their cases. Valley National Bank is seeking compensatory damages along with the costs incurred from the lawsuit, adding another layer of tension to an already fraught financial situation.
As of now, attempts to reach Burr & Forman for comments regarding the litigation have been unsuccessful. Observers are keen to see how this case develops and what implications it may hold for the bank and the legal firm moving forward.
Frequently Asked Questions
What is the lawsuit about?
Valley National Bank is suing Burr & Forman for legal malpractice connected to a troubled $15 million loan made to University Village, a senior living center in Tampa, Florida, in 2014.
What happened to University Village?
University Village has faced significant challenges, including two bankruptcies and allegations of fraud and mismanagement over the last decade.
What does Valley National Bank seek from the lawsuit?
The bank is looking for compensatory damages and to recover costs associated with the lawsuit from Burr & Forman.
Key Features of the Case
| Feature | Description |
|---|---|
| Loan Amount | $15 million |
| Year of Loan | 2014 |
| Bank | Valley National Bank (New Jersey) |
| Law Firm | Burr & Forman (Alabama) |
| Facility | University Village (Tampa, FL) |
| Bankruptcy Status | Two bankruptcies |
| Settlement Amount | $3.2 million |
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- AL.com: Birmingham Law Firm Sued
- Bankrate: List of Failed Banks
- EY: Professional Services
- Business Insider: Black-Owned Banks
- Bank of America: Financial Centers Expansion
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
