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Credit and economic woes impact businesses, developers, and real estate investors

With the credit crunch in the financial markets, many businesses, developers, and real estate investors are struggling with their lending institutions, whether involving lines of credit, mortgages, or construction loans.

At Hurwitz Sagarin Slossberg & Knuff, LLC, we represent clients in disputes with banks and other lenders, defending them against predatory lending practices and bad faith business dealings ("lender liability"). Financial institutions owe a duty of good faith and fair dealing to their customers, a duty that has never been more pronounced than in the type of economic downturn we presently face in our country. When banks engage in fraud, bad faith conduct, breach of contract and unilateral termination of the lending relationship, they may be liable for their conduct.

For individuals or companies facing foreclosure or other aggressive action by their lending institutions, a strong defense can lead to a workout of the existing loan terms, or ultimately a preservation of present terms. In the extraordinary case, where a lender effectively causes a client to go out of business, there may be opportunities to recover money damages. A new component of this discussion arises from the recently enacted Troubled Asset Relief Program ("TARP"), which provides additional avenues of defense for struggling businesses.

For more information, or to speak with an attorney, contact our office.