Practice/Industry Group Overview
Nexsen Pruet’s business litigation group represents a wide variety of lending institutions. National banks, state banks, credit unions, savings and loans as well as specialty lenders and insurance lenders turn to Nexsen Pruet when their actions as lenders lead to claims by their borrowers. Marc Manos, Susi McWilliams, Amy Geddes, David Black, David Parish, Gene Allen, Rose Manos and Peter Santos have all defended lenders in cases where borrowers claimed substantial damages.
A few cases stand out as examples of the work done by the Nexsen Pruet lender liability team over the years. A time share developer claimed over $30 million in damages from its lender when the development (Cabana Terrace) failed. The lengthy litigation resulted in summary judgment for the lender on six of seven claims and a confidential settlement on the remaining claim. A well known South Carolina developer sued two insurance company lenders in federal court claiming that the administration of the loan ruined a business opportunity involving what, at the time, would have been South Carolina’s largest mall. The lenders won partial summary judgment and a settlement followed.
Recent cases handled by the team have mirrored the unusual theories plaintiffs assert against lenders. Nexsen Pruet assisted a state chartered bank that allegedly enabled a trustee to make poor investments by making loans. The beneficiaries of the trust claimed that the loans enabled fraud and other improper conduct by the trustee. After the bank prevailed on summary judgment on RICO and other claims, the remaining claims were settled. In another unusual case, in the Eastern District of North Carolina, the debtor in a bankruptcy case claimed that its foreclosing lender illegally induced the debtor to invest in the hotel property. The lender prevailed against the multi-million dollar claim on summary judgment. Recently, hundreds of car buyers in the Upstate of South Carolina asserted claims that an automobile dealership defrauded them into buying cars. When the automobile purchasers sued the noteholders and the dealerships sought bankruptcy protection, multiple lender defendants turned to Nexsen Pruet lawyers Marc Manos, Gene Allen, David Parish, Rick Mendoza and Rose Manos for assistance. The cases are ongoing.
Nexsen Pruet lawyers defend large and small lenders throughout the Carolinas from claims that lender misconduct led to borrower losses. These cases range from single loans to purchase property to major projects and businesses. The claims also include the cutting edge and creative theories being developed by borrower plaintiffs as more and more businesses and ventures fail. Nexsen Pruet can form the right team for the size and complexity of the case and use its experience and contract partners to make lengthy and difficult discovery, including electronic discovery, cost effective and manageable. Whether the claim involves a single car loan, hundreds of consumer loans, or a complex leveraged participant loan to a real estate syndicate, Nexsen Pruet will bring together the lawyers and paralegals with relevant experience to help your lending institution survive the claim—whether it is “bet the company” or “nuisance” level.
If you work for or represent a lender who is being sued or likely to be sued by a borrower or beneficiary of a borrower, such as a trust beneficiary or shareholder, contact one of Nexsen Pruet’s seasoned lender liability attorneys.