On Wednesday, April 29, 2026, the Lexington Herald-Leader reported that Fayette Circuit Judge Julie Muth Goodman recused herself from a property dispute involving Bancorp, a Minnesota-based bank seeking to recover money from several dilapidated properties in southwest Lexington.

The recusal followed accusations from Bancorp and other lenders that Goodman failed to disclose a conflict of interest, as James Frazier III, the receiver in the property dispute, had also served as one of Goodman’s lawyers in a previous impeachment attempt.

The legal wrangling has added to the problems of the apartment buildings, many of which are condemned and awaiting repairs, sale, or demolition. Some units have walls covered in black mold, are damaged by squatters, and have standing water and sewage issues. Until recently, families were paying as much as $1,000 a month to live in these conditions.

Goodman announced her recusal during an April 17 hearing but did not remove Frazier as the receiver. She criticized the banks’ lawyers, accusing them of delaying the proceedings for their own interests, stating that the out-of-town banks were trying to spend as little money as possible while utilizing Fayette County resources.

Lawyers for Bancorp and other lenders had filed a motion on March 30 seeking Goodman’s removal, arguing her impartiality was in question. They noted that Frazier, who works as a master commissioner in Fayette County, was appointed by Goodman as receiver and had also served as her private lawyer earlier in the year.

Bancorp aims to restore its liens on the properties and confirm the previous owners’ debt to the bank. New property managers are requesting funds from the bank to update the properties, which they describe as a “humanitarian crisis to the nth degree.” As of the April 17 hearing, 57 units were condemned among the four apartment buildings, and three entire buildings were condemned.

No one is currently living in the condemned units or buildings, but tenants remain in nearby units that have been repaired.

Fayette Circuit Judge Kimberly Bunnell has since been assigned to the case, but no hearing has been scheduled.

Michael Sanner, an attorney for the city, aims to bring more units into compliance with housing codes to provide more families with homes.

Home Forward, a Lexington-based real estate company, took over the apartments around the time Frazier was appointed receiver in February 2025. Debbie Adams, the company’s owner, described deplorable conditions, including buildings condemned for lack of fire extinguishers, inoperable smoke detectors, no lighting, and no locks. Within the first month of Home Forward’s work, 84 units had their condemnations lifted. However, several units and buildings remain condemned and in need of repairs, and Home Forward lacks sufficient funds.

 

 

Source: Lexington Herald-Leader