Four Mile Capital LLC v. Reynolds South Tower LLC (River's Edge at Manchester Construction-Defect Fraud Suit)
Four Mile Capital, which bought the 212-unit River's Edge at Manchester apartment building in Richmond for nearly $50M in 2021, sued developer Reynolds South Tower LLC and principals Guy Blundon and Mark Purcell in Richmond Circuit Court in May 2025, alleging fraud, breach of contract, negligence, and business conspiracy over water leaks a 2023 investigation attributed to a building envelope not built to its design, including missing waterproof sheathing Four Mile says it was told had been installed. At an August 7 hearing, the defense moved to dismiss the fraud counts, arguing Four Mile was not misled; Chief Judge Jacqueline S. McClenney said she expects to rule within a few weeks.
Why it matters
Tests how far a seller's negotiated post-closing repair commitment for a known defect can survive scrutiny once an independent investigation reveals the underlying construction problem was materially different, and larger, than represented at the time of sale. Buyers who accept a repair arrangement in lieu of a price reduction for a known issue should treat the case as a guide to preserving a later fraud claim if the seller's account of the defect's cause proves false.
Read the full write-up
The complete analysis of this matter, with its procedural history and practical takeaways.
Open the full matterGet an email when a matter like this is filed
Set up a free watchlist for construction defect matters in Virginia, or for the tenants, borrowers and guarantors in your portfolio.
Create a watchlistMore construction defect matters
Other matters in Virginia
CREdocket summarizes public court records and reporting; see our sourcing standards and corrections log. Not legal advice. Facing something similar? Contact us.