banking & finance - lender liability

Representative Cases

•  Claim by plaintiffs that major bank had acted fraudulently and in breach of contract in handling of loan relationship with borrower later in bankruptcy. Involved issue of first impression regarding plaintiffs’ standing to claim damages based on alleged injury to a bankrupt estate.

• Plaintiff bank had been a party with another bank in participation agreements on two construction loans secured by apartment buildings. Before the buildings were completed, the lead participant bank failed and was taken over by the FDIC. Plaintiff bank sued the FDIC, claiming that it had failed to fulfill its obligations under the loan participation agreements to manage the loans.