Hall Seeking $275 Million in Lawsuits Against FSLIC

DALLAS — Dallas real estate syndicator Craig Hall has filed a lawsuit seeking more than $275 million in damages from the Federal Savings and Loan Insurance Corp., attorneys said.

Hall alleged in court filings this week that recent actions by the federal thrift regulators are having “disastrous effects on the economic viability” of his business, Dallas-based Hall Financial Group.

Claims filed by Hall Financial partnerships in federal court in Dallas and in state courts in Michigan said that recent court actions taken by the FSLIC against Hall will halt the company’s financial restructuring and destroy Hall’s business.

“It’s not an exaggeration to say that we are very concerned about this and that it affects many other parts of our operation,” Hall said Wednesday. “However, we are hopeful that we will find someone of a proper authority to deal with on this.”

Hall Financial in January announced that it was restructuring more than $500 million in loans on money-losing apartment and office projects in Texas, Arizona, Colorado and Michigan. Hall said he has not been able to arrange out-of-court talks with FSLIC officials.

Last month, the FSLIC filed suits in Texas, Colorado and Michigan seeking control of 15 Hall properties. The FSLIC is the conservator of Los Angeles-based Westwood Savings & Loan Assn., which provided $132 million in financing for the properties.

The FSLIC, which took over Westwood in March because of its large problem real estate loans, had been negotiating with Hall Financial to restructure the loans. But after negotiations broke down, the FSLIC sued to have a receiver appointed for the properties.

Hall, in his counterclaims filed this week to the FSLIC suits, is asking for injunctions halting the agency’s actions.