Bank of America Corp (NYSE: BAC) Sued by Property Preservation

Bank of America Corp (NYSE: BAC) has been sued by a property preservation company on charges of deceit, fraud and breach of contract as well as unjust enrichment in a civil suit in California.

Diversified Field Services of Tustin, California, which maintains foreclosed properties for banks, says in its lawsuit that Bank of America Corp (NYSE: BAC) signed a Diversified Field Services to maintain repossessed homes in 14 states last year.

The company said that it spent more than $2 million preparing to do the work that Bank of America Corp (NYSE: BAC) contracted it to do, but that the work never came.

“Homeowners are not the only victims of this [mortgage] crisis; it extends to firms like DFS and onward to the mom-and-pop businesses who actually mow the lawns and clean the countless homes that now sit empty,” said DFS attorney Eric Goodman.

Diversified Field Services also alleges that Bank of America Corp (NYSE: BAC) misrepresented the quality of the work done by DFS, which the company believes destroyed its business and ruined its reputation.

The company also alleges that Bank of America Corp (NYSE: BAC) never paid for the $400,000 worth of work that it did do.

The suit seeks unspecified damages.

Bank of America Corp (NYSE: BAC) says that it has not seen the civil suit, filed in Orange County, CA.