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 Coastline acquired a 2007 construction loan and guaranties that were originally made by a lender that failed and was placed into an FDIC receivership.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
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.