Lender Liability

Bank Not Liable for Failing To Disclose Environmental Issues At Foreclosure Sale

Disclosure of Environmental Liabilities, Environmental Due Diligence, Lender Liability /

In Rhima v JPMorgan Chase Bank, 2012 U.S. Dist.LEXIS 70492 (N.D.Tx. 5/18/02), plaintiff was the successful bidder at a foreclosure auction for a warehouse property. The advertised terms and conditions of the foreclosure sale offer indicated that bidders would be provided with environmental reports and access to the property for inspection but the sale was […]

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Bank Not Liable For Auction Sale of Contaminated Property

Environmental Due Diligence, Lender Liability /

In Lusk v First Century Bank, 2012 W. Va. LEXIS 241 (Sup. Ct. 4/27/12), the plaintiff/petitioners purchased a commercial property at an auction foreclosure sale. The Notice of Trustee’s Sale and Regency’s advertising notice stated that the sale was subject to “environmental regulations” and that the property was being sold in an “as is” condition.

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State Appeals Ct Affirms Note Purchaser Cannot Bring Nuisance Action For Contamination

common law, Lender Liability, Underground Storage Tanks /

It is no secret that distressed debt investors are eagerly looking for opportunities to purchase defaulted or underwater loans. One strategy used by investors with a healthy risk appetite is to purchase promissory notes secured by contaminated property at deeply discounted pricing. The investor then brings an RCRA 7002 action seeking an order requiring the

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Acquisitions Bring CERCLA Liability to Banking Conglomerate

CERCLA, Corporate and Real Estate Transactions, Environmental Due Diligence, Lender Liability /

From a purely legal standpoint, the recent ruling In Tennessee v. Roane Holdings Ltd., 2011 U.S. Dist. LEXIS 143703 (E.D.TN 12/14/11) was not unusual. The court ruled on a motion to dismiss that a party who had entered into an administrative order on consent could not bring a cost recovery action under CERCLA section 107

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Foreclosing Banks Increasingly Using Environmental Insurance For Sales Risks

Corporate and Real Estate Transactions, Environmental Due Diligence, Lender Liability /

As the nation slowly lifts itself out of the effects of the Great Recession, lenders are beginning to increase the pace of foreclosures on commercial properties. The volume of foreclosures is likely to significantly increase during the next few years as the loans that were originated during the height of the credit bubble become due.

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No Administrative Claim For Hotel Damaged By Methane from Bankrupt Landfill Operator

bankruptcy, Corporate and Real Estate Transactions, Environmental Due Diligence, Lender Liability /

It seems like there were a lot of cases in 2011 involving commercial properties impacted by methane gas from former landfills. A recent case involved a novel question if the owner of a hotel damaged by methane gas migrating from a landfill could seek administrative claim status in a chapter 7 bankruptcy case. In the

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A Lawyer, an Underwriter and an Appraisor-An Update

Brownfields, Disclosure of Environmental Liabilities, Environmental Due Diligence, Lender Liability /

The title of this post sounds like a teaser to a bad joke but unfortunately it refers to the latest round of motions in two sprawling lawsuits involving a defunct planned community that was to be developed on what proved to be a part of a world war 2 bombing practice range. The defendants include

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Why Property Owners Should Consult Lawyers Before Signing Gas Leases

Fracking, Hazardous Waste, Lender Liability, oil spills /

We have been sharing and commenting on articles discussing how lenders are becoming increasingly concerned about borrowers who lease their property to allow hydraulic fracturing (“fracking”). The operations permitted by the leases on what is typically rural or agricultural land include storage of hazardous substances and wastewater that likely would constitute defaults under the mortgages.

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CMBS Lender Kept In Case Over Questions About Environmental Disclosure

Lender Liability /

The federal district court for the Southern District of New York denied a motion to dismiss filed by Morgan Stanley Mortgage Capital, Inc (MSMC)that it failed to adequately disclose environmental conditions at a shopping center and should not be required to buy back the $81MM loan. This case has some yummy nuggets. In this case,

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