Fish Gotta Swim, Birds Gotta Fly: Plaintiffs Lawyers Gotta Do Their Thing, Too
Very, very high on the list of people or groups that you do not want to scorn should probably be the nation's top plaintiffs lawyer group. You see, these people sue corporations for a living, day in and day out. It doesn't take much imagination to figure out what they'd do to a lender they feel has personally done the group wrong.
So one wonders what Wachovia Bank was thinking in 2008 when it allegedly reneged on an $89 million loan for the American Association for Justice's new headquarters in
downtown Washington, D.C. The National Law Journal reports that when the mortgage market dried up in 2007, Wachovia invoked the "material adverse change"
clause in the deal's contract and backed out of the loan.
Last week, U.S. Judge Royce Lamberth of the federal court in D.C. issued a ruling permitting the case to go forward, finding that there were valid questions as to whether Wachovia acted legally when it terminated the loan. In a case that presents key issues also now being resolved in dozens of subprime-type cases around the country, the court ruled that there were genuine issues of material fact as to "whether the changes in the securities markets Wachovia used to justify killing the deal qualified as unforeseeable," according to the NLJ.
Posted by Bruce Carton on April 15, 2010 at 01:38 PM | Permalink
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