JAZ SPEAKS BEFORE SPECIAL ASSETS MANAGEMENT ASSOCIATION ON SHAM GUARANTEE DEFENSE

ON SEPTEMBER 19, 2013, PETER JAZAYERI, ALONG WITH MICHAEL SLATTERY AND REGIS GUERIN, MADE A PRESENTATION TO THE SPECIAL ASSETS MANAGEMENT ASSOCIATION AT THE CALIFORNIA CLUB IN DOWNTOWN LOS ANGELES.  THE PRESENTATION ADDRESSED THE SHAM GUARANTEE DEFENSE, AND EXPLAINED TO LENDERS HOW TO EFFECTIVELY DEFEAT THE DEFENSE.  THE SPECIAL ASSETS MANAGEMENT ASSOCIATION IS A PROFESSIONAL TRADE ASSOCIATION COMPRISED OF SPECIAL ASSETS AND WORKOUT PROFESSIONALS FROM MULTIPLE FINANCIAL INSTITUTIONS DEDICATED TO FOSTERING THE BEST PRACTICES IN THE FINANCIAL WORKOUT ARENA THROUGH CONTINUING EDUCATION, MENTORING, SKILL SHARING, AND PEER SUPPORT.  FOR A COPY OF THE PRESENTATION CLICK ON THE LINK BELOW.

Sham Guaranty 9-19-13 Printout

JAZ ADDRESSES CALIFORNIA STATE BAR FINANCIAL INSTITUTIONS COMMITTEE ON SHAM GUARANTY DEFENSE

ON SEPTEMBER 10, 2013, PETER JAZAYERI, ALONG WITH MICHAEL SLATTERY, GAVE A PRESENTATION ON THE SHAM GUARANTY DEFENSE AND FEDERAL PREEMPTION.  FOR A COPY OF THE PRESENTATION, CLICK HERE.

JAZ WINS SUMMARY JUDGMENT IN FAVOR OF A COMMERCIAL LENDER AND SHUTS DOWN SHAM GUARANTY DEFENSE ON PREEMPTION GROUNDS

A CALIFORNIA SUPERIOR COURT ISSUED A RULING GRANTING A SECURED LENDER SUMMARY JUDGMENT IN A MULTI-MILLION DOLLAR BREACH OF GUARANTY ACTION IN A LAWSUIT ARISING FROM A DEFAULTED COMMERCIAL LOAN.  THE DECISION IS THE FIRST AND ONLY KNOWN RULING IN CALIFORNIA REGARDING FEDERAL PREEMPTION AND THE SHAM GUARANTY DEFENSE AND HOLDS THAT THE SHAM GUARANTY DEFENSE IS PREEMPTED BY 12 U.S.C. SECTION 1823(E).  THE DECISION WAS ISSUED BY HON. SANDRA MCLEAN IN COASTLINE RE HOLDINGS CORP. V. OROVILLE SELF STORAGE, LLC 

(CASE NO. 15373).  FOR A COPY OF THE DECISION, CLICK HERE.

WHY IS THIS IMPORTANT?  OFTEN TIMES, LENDERS HOLDING GUARANTYS WILL ENCOUNTER THE SHAM GUARANTY DEFENSE, IN WHICH A GUARANTOR ALLEGES THAT THE GUARANTY IS NOT ENFORCEABLE.  THE SHAM GUARANTY DEFENSE IS A FACT-SPECIFIC CREATURE OF CALIFORNIA COMMON LAW AND CAN RESULT IN PROTRACTED LITIGATION AND THE NECESSITY FOR A JURY TRIAL.  THIS DECISION ON PREEMPTION GROUNDS PROVIDES A QUICK-STRIKE METHOD TO SHUT DOWN THE SHAM GUARANTY DEFENSE WITHOUT TRIAL.

bruce