Banking

The Firm has represented a number of local, regional and national banking institutions in commercial and securities litigations, and has maintained its lengthy relationships with banking industry representatives and local regional banks that have evolved with the banking industry itself. Today, the Firm represents several substantial banking institutions in complex litigation matters. We have substantial experience with the nuances of banking laws and how they may impact litigation issues and strategy, and the unique considerations for our clients in such litigation.

The following are examples of matters that have been handled by the Firm on behalf of our banking clients:

• The Firm represented a national banking association in defense of a national class action brought by numerous beneficiaries and payees of personal injury structured settlements against numerous financial institutions, among other defendants. Plaintiffs sought hundreds of millions of dollars in damages caused by the alleged waste and diversion by various trustors, trustees and investment advisors of the proceeds of the structured settlement trusts.
• The Firm represented a national banking organization in Class Action litigation pending in the United States District Court, Central District of California (known as the First Alliance Litigation), in which a certified class sought substantial monetary damages as well as equitable relief against numerous lenders and others for alleged "predatory lending" practices. This matter was satisfactorily resolved without any payment by our client.
• The Firm represented national banking organizations in a series of lawsuits filed in connection with the failure of a mortgage warehousing company in San Diego. The combined actions involved approximately 2,500 investors who had invested in excess of $200 million in that company and received in return various interests in fractionalized notes and deeds of trust and collateralized mortgage obligations. When the company filed for bankruptcy protection, investors sued the defendant financial institutions, accountants, title insurers and related parties to recover losses, asserting violations of state and federal securities laws, breach of fiduciary duty, fraud, aiding and abetting and conspiracy to commit the same. We tried seven test cases selected from a total of approximately 870 state court cases filed by the investors. After a four-month jury trial, we received a defense verdict for our clients.
• The Firm represented a national banking organization in a six-week federal court jury trial based on complex lending and banking issues in which our client allegedly caused the bankruptcy of the plaintiff-entity. Following a mistrial resulting from a hung jury, the trial court granted our motion for judgment on all counts and entered judgment for our clients.
• The Firm represented the financial services affiliate of a national bank against claims that one of the affiliate's agents sold variable annuities to a group of senior citizens by allegedly misrepresenting the risks associated with the investments. A confidential settlement was negotiated on behalf of the client.
• The Firm represented a national bank accused of allowing a manager of one of the bank's corporate clients to embezzle funds from that corporation's account. After the actual embezzler filed a bankruptcy petition, the matter was settled favorably for the client.
• The Firm represented a large national bank in an action it filed against another large national bank seeking damages for fraud related to the handling of a multi-million dollar loan syndication.
• The Firm has handled a number of cases against the Resolution Trust Corporation ("RTC") related to obligations of savings and loan institutions that were taken over by the RTC.
• The Firm has prosecuted judicial foreclosure actions on behalf of lending institutions.