News & Analysis as of

Negligence Lenders

Cadwalader, Wickersham & Taft LLP

High Court Ruled That Lender Suffered No Loss Despite Negligent Valuation of Security

On 27 September 2023, the British High Court ruled that the claimant relying on the defendant’s report suffered no actionable loss, despite the defendant’s admission of negligence. ...more

King & Spalding

Southern District of New York Denies Lender’s Motion to Dismiss in $272 Million Ray-Ban Cybertheft Lawsuit

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On January 4, 2023, the U.S. District Court for the Southern District of New York granted in part and denied in part JPMorgan’s motion to dismiss claims by Essilor International SAS and Essilor Manufacturing (Thailand) Co.,...more

Buchalter

Sheen v. Wells Fargo Bank, N.A.: The California Supreme Court Delivers a Big Win for Lenders and Loan Servicers

Buchalter on

On March 7, 2022, the California Supreme Court issued its much-anticipated decision in Sheen v. Wells Fargo Bank, N.A., holding that a lender does not owe a borrower a tort duty of care in considering a loan-modification...more

Hogan Lovells

The Arrium Proceedings – when is a company insolvent and when is a representation not a representation?

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The Supreme Court of New South Wales has recently handed down its decision in proceedings (“Arrium Proceedings”) brought by a number of lenders against former officers and employees of Arrium Limited and its subsidiaries...more

Spilman Thomas & Battle, PLLC

COVID-19 Litigation Trends for April 24-May 3, 2020

Our updates about “The REAL Trending Litigation Topics Regarding COVID-19” are now called Unprecedented to reflect the development and adaption of legal theories to address the unprecedented impact from COVID-19. Although the...more

Bowditch & Dewey

Lender Liability During COVID-19

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During an interview with Bloomberg TV on March 6th, Lawrence Summers, former Secretary of the U.S. Treasury, observed: “Economic time has stopped but financial time has not stopped.” An incisive summary as any of the current...more

Jones Day

Bakewell v Anchorage Capital Master Offshore Ltd: Can Ancillary Rights and Claims Be Sold?

Jones Day on

The Background: An assignee of loans owed by the Arrium Group sued certain officers of the Arrium Group, alleging they had made negligent misstatements or misrepresentations in drawdown and rollover notices issued prior to...more

A&O Shearman

Negligent valuations and refinancing: a lesson for lenders on recovery

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The Supreme Court unanimously held that a lender was only entitled to recover new money, which had been advanced as part of a loan refinancing, in its claim against a negligent valuer (whose report it relied upon in entering...more

BCLP

Finding the Unicorn in Lender Liability Litigation

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Investors frequently talk in terms of trying to find the next unicorn, that small start-up company that is going to turn into a billion dollar valuation. Lawyers are like that as well, always looking for that new decision...more

Balch & Bingham LLP

Alabama Supreme Court: Lender Can Sue Directors of a Public Improvement District for Negligence, Breach of Fiduciary Duty

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Alabama law permits the creation of public corporations known as “improvement districts,” which can then issue bonds that are similar to bonds issued by a municipal corporation. These bonds can be used to finance improvements...more

Ervin Cohen & Jessup LLP

Careful Who You Trust. A Lender Can Be Liable For The Negligence And Misrepresentations Of Its Loan Servicers, Even Absent Any...

In the recent case of Daniels v. Select Portfolio Serving, Inc., the California Court of Appeal has held that a lender may be liable for the negligence and misrepresentations of the lender’s servicer, without any contractual...more

Pullman & Comley, LLC

Appellate Court Notes

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Appellate Court Advance Release Opinions - AC36506 - Sidorova v. East Lyme Board of Education - Due to budget cuts, the Board of Education laid off the plaintiff who was a tenured French teacher. She sued for...more

Stinson LLP

Colorado Supreme Court: Construction Lender's Subsidiary Is Not a Subsequent Purchaser - Negligence Claim May Not Be Asserted...

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Lenders and contractors may want to take additional precautions before they take title to a newly constructed home through foreclosure (or deed in lieu of foreclosure) following a recent decision by the Colorado Supreme...more

Sheppard Mullin Richter & Hampton LLP

Lenders Beware -- California decision may ignite next wave of lender liability litigation

In a recent decision from the California Court of Appeals entitled Jolley v. Chase Home Finance, LLC, the Court severely curtailed lenders’ ability to dispose of lender liability claims on summary judgment, thereby adopting a...more

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