Connecticut General Not Liable For Dallas Apartment Loan Default

DALLAS - A federal judge ruled April 21 that Connecticut General Life Insurance Co. is not personally liable after defaulting on a $9.2 million loan backed by an apartment complex whose value was ruined by widespread mold infestation. 17671 Addison Road v. Connecticut General Life Insurance Co., No. 3:01-CV-2503-N (N.D. Texas).

U.S. District Judge David C. Godbey ruled that the circumstances did not trigger clauses in a loan agreement that would have made Connecticut General personally liable for a non-recourse debt backed by Connecticut General's ownership interest in the Saratoga Springs Apartments in Dallas.

Connecticut General borrowed the money from …