Lender Liability

Issue: Lender Liability

Shapiro v. Federal Deposit Insurance Corporation

Counsel: Denzil D. McKenzie

This was a lender liability action brought by a disgruntled borrower of the failed Bank of New England-West. The borrower alleged that the FDIC as Receiver for the failed bank had breached a contract and committed unfair and deceptive trade practices. At issue was the Bank’s alleged failure to make a significant fund advance to the Plaintiff pursuant to the terms of a forbearance agreement. As defense counsel, we represented the FDIC in a jury trial presided over by Chief Judge Tauro. Following six full days of trial, the jury returned a unanimous verdict on all counts, in favor of our client.