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BofAmerica wins $5.2 M in Chicago 'Spire' default case

Bank of America Corp. won a $5.2 million judgment against Irish developer Garrett Kelleher and his Shelbourne Development Group Inc. for defaulting on a loan for the planned 150-floor Chicago Spire condominium tower.

U.S. District Judge Amy St. Eve in Chicago ruled in favor of the Charlotte, North Carolina-based lender, awarding damages plus daily interest of about $153 through Aug. 5, the date of the judgment. St. Eve also awarded the bank about $117,343 in credit-card payments and $26 a day in interest.

“There is no genuine dispute as to the material facts that Shelbourne defaulted on its obligations under the loan agreement and credit card agreement and that Kelleher personally guaranteed payments of any and all debts,” St. Eve wrote.

Bank of America sued Shelbourne and Kelleher, in his role as chairman, in 2009 claiming the builder failed to show that it had obtained an irrevocable commitment for a construction loan from a lender or lending syndicate, leading the bank to declare a default.

Shelbourne officials didn't immediately return a phone call seeking comment on the judgment.

The Spire, on the north side of the Chicago River near where it meets Lake Michigan, was planned to be the tallest building in North America and home to 1,194 residences. The elongated spiral structure was designed by architect Santiago Calatrava. Shelbourne halted construction in 2008 after the foundation was dug and reinforced.