The Cherryland decision — full-recourse enforcement of non-recourse loans *

USA - February 3 2012
The economic decline in the real estate market has forced many borrowers of commercial mortgage-backed security (“CMBS”) loans into default situations, which, in the case of some borrowers with non-recourse loans, can trigger full-recourse provisions to guarantors under their “non-recourse” guaranties.

Co-authors: Jeffrey A. Lenobel, Abigail Lamb.

New York Supreme Court upholds accelerated enforceability of “bad boy” guaranty in CMBS case *

USA - March 18 2011
On March 8, 2011, Justice Melvin L. Schweitzer of the New York State Supreme Court granted a motion for summary judgment in lieu of complaint filed by UBS Commercial Mortgage Trust 2007-FL1, Commercial Mortgage Pass-through Certificates, Series 2007-FL1 (“UBS”), and Normandy Reston Office LLC (“Normandy,” together with UBS, collectively, “Plaintiffs”), enforcing the obligation of Garrison Special Opportunities Fund LP (“Garrison”), the guarantor under a “bad boy” guaranty, to pay the full amount of the outstanding loan after Borrowers (as defined below) filed for bankruptcy protection.

Co-authors: Stacey Daniel , Robert J. Ward , Robert M. Abrahams, Jeffrey A. Lenobel, Bruce S. Cybul .