NFL Pro Bowler Dre Bly Sued For $910,000 By Broker Who Was Shopping $13 Million Loan
Two-time Pro Bowler and Super Bowl XXIV Champion Dre Bly finds himself defending against a lawsuit filed by Harvey Burton d/b/a Investment Funding Associates based on alleged breach of a contract when Bly failed to pay a brokerage commission of 7%, which came out to $910,000. The lawsuit is pending in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade, Florida.
Burton says that he and Bly, through his company Dre Bly Sports Complex, LLC as well as family member Donald Bly, agreed to pay the brokerage commission in exchange for Burton securing a $13 million loan commitment for a sports and fitness complex in Virginia Beach. In his Complaint, Burton highlights 3 instances (in February 2017, April 2017 and August 2017) wherein he found a lender for Bly, but each time the loan failed to close.
Burton claims that Dre Bly dropped the ball on multiple loan opportunities.
In February 2017, Burton allegedly was able to secure a $12.862 loan for Bly; however, Bly failed to send a due diligence fee or provide information and documents to the lender.
In each April and August 2017, Burton says that he oobtained letters of intent from 2 different institutions. In April, Bly allegedly accepted the loan and then refused to pay for an appraisal. Burton claims that in August 2017, Bly failed to even complete an application.
Burton’s position is that he did what was required of him under the contract containing a brokerage fee clause and that Bly breached the contract on multiple occasions, whether it be through his failure to provide information and documents or submitting an application after Burton find a possible outlet for funds.
The contract stated, in part,
“A letter expressing an interest or the intent to provide the loan commitment, Term Sheet or Application are to be considered preliminary to the issurance of the loan commitment, and CLIENT will provide all information and assist in the loan process in all ways as shall be requested by LENDER – failure to do so shall be deemed a default by CLIENT in the terms and conditions of this Agreement – provided LENDER’s requests are reasonable and customary, the proposed loan and terms if stated do not conflict with those set forth herein, and the LENDER is qualified, ready, willing and able to issue the loan commitment if his requirements and conditions are satisfied.” (emphasis added).
Bly attempted to open a sports training complex in the past, but had to put it up for sale back in 2012, even after receiving $250,000 from the Virginia Beach economic development authority.