You have a claim against a corporation and/or its officers, but you find out that the corporation is dissolved and there is a successor corporation in its place that appears to be essentially the same corporation. Now what? In Bernard v. Kee Mfg. Co., Inc., Florida’s Supreme Court adopted the […]
The newest development concerning independent tort claims and causes of action arising from a breach of contract manifests as a result of Tiara Condo. Ass’n., Inc. v. Marsh & McLennan Co. and is exemplified through the holding of Marian Farms, Inc. v. SunTrust Banks, Inc. Marian Farms, Inc. v. SunTrust […]
As counsel for lenders, I’ve been consulted with and required to opine on a wide range of topics throughout my career. Specific to financial institutions, lawyers working in our banking law practice group have knowledge of not only the legal process for special assets workouts and the regulations governing commercial […]
Lenders and trade vendors often sagely require personal guarantees from the insiders of their debtor. In the event of debtor bankruptcy, a creditor may look to the insider-guarantor to satisfy the debt. The creditor’s ability to be made whole, then, is directly related to the financial position of the insider-guarantor. There is a problem: the Deprizio doctrine can erode the insider-guarantor’s financial position. Under the doctrine, the bankruptcy Trustee may disgorge assets from the guarantor that could otherwise satisfy the debt. Luckily, there is a solution to the Deprizio problem: a carefully crafted guaranty agreement that waives the guarantor’s claim against the bankruptcy debtor. This blog post explains the problem and clarifies the solution.
Most of the cases alleging an insufficiently drafted personal guaranty concern corporate officers guarantying corporate debt, and the officer’s subsequent defense that he was signing in a strictly representative capacity. In deciding these cases, courts have also outlined the language requirements for a valid guaranty. This post is the third […]
This post is the second part of a two part series examining defenses to enforcement of personal guaranties in Florida. Part one identified successful defense to enforcement of a guaranty and can be found here. Part two seeks to analyze defenses that have been unsuccessfully asserted in defense of personal guaranty enforcement.
A personal guaranty is a contract signed by an individual wherein the guarantor affirms his or her personal obligation on a loan or some other debt obligation, such that if the original debtor becomes unable to pay the debt, the guarantor is personally liable for that debt and is legally responsible for its repayment. In a typical case, a President, CEO, or other officer signs a personal guaranty for the debts of his or her business and becomes personally liable for the debt if the business doesn’t pay it off. Florida case law demonstrates that a simple, but well-drafted personal guaranty that specifically enumerates the personal nature of the debt assurance is adequate to form a legal, binding personal guaranty. This Blog post seeks to identify successful defenses utilized in Florida case law to consider when drafting or seeking to enforce personal guarantees.
On September 25, 2013, Florida’s Second District Court of Appeal issued an opinion regarding a very familiar topic in Florida – a plaintiff’s standing to file and maintain a foreclosure action. In Focht vs. Wells Fargo Bank, the Second DCA upheld the long-established precedent that a plaintiff in a foreclosure action must prove that it had standing at the time it filed the foreclosure complaint in order to maintain the action. 2013 WL 5338048 (Fla. 2d DCA 2013). If plaintiff lacks standing at inception, the defendant can have the case dismissed via summary judgment proceedings. Id.
As credit begins to loosen, cash begins to flow and the building community starts to recover, we are in a unique position to advise both contractors and banks as to legal issues pertaining to loan origination due to our practice focuses in banking and construction. Contractors often ask us to reveal the secrets of how to be viewed as the best candidate for a loan or credit to further expand their business.
Given the current real estate market, a real concern among renters is what will happen to them if their landlord stops paying the mortgage and a foreclosure action is filed. In 2009, a new law was enacted to protect tenants of foreclosed property, such that they may not be immediately evicted upon sale of the property after foreclosure without notice.