GAB Enterprises, Inc. v. Rocky Gorge Development, LLC

“A bad beginning makes a bad ending,” 1 and in this case, the parties’ difficult relationship at the beginning of this development project presaged its eventual demise. In 2003, Rocky Gorge Homes, LLC (“Rocky Gorge”) and GAB Enterprises, Inc. (“GAB”) created RGHGAB at Frederick, LLC (“RGHGAB”), to buy, develop, and sell property in Frederick County. Like many others, this deal failed to predict the catastrophic collapse of the real estate market about five years later, which left RGHGAB holding a figurative bag that contained a nearly $9 million promissory note guaranteeing property worth…