With claims against lenders on the rise in the wake of recent economic times, lenders look for a banking law attorney in New Jersey who can mount an aggressive defense. This entails understanding common issues involved in lender liability defense.
Parties Involved in a Lender Liability Claim
In addition to the allegedly defrauded borrower, lender liability claims are typically brought against banks, commercial and mortgage lenders, leasing companies, finance companies and other institutions. Commercial litigation in these areas can be complex. Many of these actions are brought under the theory that the commercial lender owes a fiduciary duty to their client.
Common Lender Liability Defenses
Again, in the commercial arena, lender liability cases are usually built around some common allegations. These cases usually allege one of the following:
- bad faith on the part of the lender;
- breach of fiduciary duty or trust;
- breach of contract;
- predatory actions; or
- various types of fraud.
Firms who routinely represent lenders also have an advantage when representing borrowers on the other side due to their insight into the strategy of a typical defense. Again, your attorney can look at what duties the lender owed and whether they were breached.
Building a defense in most cases centers on determining the duty the lender had to the borrower and determining whether a breach took place. If a contract dispute is involved, it’s critical to have the terms of the document carefully reviewed. The stakes are high in lender liability claims due to the significant financial exposure to the institution or lender.
Since the housing crisis and other economic hardships have hit in recent years, our firm has vast experience defending our clients against lender liability claims. We have a proven track record of achieving favorable outcomes for our clients. To put a skilled banking lawyer in New Jersey in your corner, call the offices of Snelllings Law LLC. To make an appointment contact us at 973.265.6100.