JAZ OBTAINS $3.9 MILLION JUDGMENT FOR LENDER IN BREACH OF CONTRACT CASE
On May 20, 2014, the Superior Court of California, County of Butte entered a judgment in favor of Jaz’s client, Coastline RE Holdings Corp. (“Coastline”), in a hard-fought breach of guaranty case. Coastline acquired a 2007 construction loan and guaranties that were originally made by a lender that failed and was placed into an FDIC receivership. After three years of contested litigation, the Court awarded Coastline a judgment for over $3.9 million. The amount of the judgment represents a full recovery for the lender, including all costs, lawyer fees, and interest.
The judgment is important because it was entered in a case where defendants argued that the contract should not be enforced on the grounds that it was a sham guaranty. The Court disagreed, and held that federal law under 12 U.S.C. Section 1823(e) preempted defendants’ common law defenses.
Click Here for a copy of the Judgment in Favor of Coastline