Banking and Lending Cases
We have represented numerous financial institutions over the years. All of our shareholders were practicing with a prominent local real estate and banking law firm during the late ‘80s and early ‘90s. These were terrible years for the banking and real estate industries in Texas, but our clients’ needs for legal help gave us all substantial experience that many lawyers may never be able to obtain. We hope those days never return, but we take pride in the work that we did to help our clients through those difficult times.
Since then, the banking industry has changed dramatically. There are fewer lenders, and more mega-lenders. Lenders are tolerating less lending risk, and making fewer loans. Still, certain things remain true. Lenders still get sued, sometimes just for being involved in a deal and being a convenient target, i.e. a “deep pocket.” In some cases, the prudent action is to settle for the cost of defense and be done, but in other cases it may be more in the lender’s long-term interest to stand its ground. By doing this, the lender may discourage others from bringing the lender into a suit just out of the hope for an early payday. Deciding which course of action is more prudent should be made with the advice of experienced counsel.
Borrowers still default on loans, despite the most careful underwriting and due diligence. We have substantial experience in bringing suit to enforce notes and documents that secure payment of notes. We fully understand and appreciate that the usual goal in this type of action is to collect, not to make a point. We will periodically evaluate each suit and help you determine whether it is cost-effective to continue with the suit.
We have even represented banks against other banks. These types of cases often involve a dispute over which bank’s lien has priority in certain collateral, although a recent case put two lenders at odds over which was responsible for a series of hot checks written by a commercial customer. Our experience and careful research can put you in the best position to protect your institution’s rights.
We often represent borrowers, as well. In these instances, we try to make sure that the lender is following the terms of the loan documents and applicable law. Some of our recent cases have involved mortgage lending, an area in which lender/servicer mistakes are common. Let us evaluate your case objectively to determine whether you have a valid defense against a lender’s action or a possible claim back against the lender.