October 24, 2014
On October 22, Weil won summary judgment for Credit Suisse that dismissed the one remaining claim in a multi-hundred million dollar suit relating to real estate loans. Plaintiffs, which were entities controlled by Highland Capital, brought suit against Credit Suisse in New York Supreme Court alleging that Credit Suisse improperly arranged loans for five resort developments based upon allegedly fraudulent or inflated appraisals provided by third parties. Funds managed by Highland Capital bought interests in these loans.
On July 10, 2014, Credit Suisse had secured the dismissal of all other claims, including claims for fraud, breach of the duty of good faith and fair dealing, aiding and abetting fraud, conspiracy and unjust enrichment, leaving just plaintiffs’ claim for breach of contract – which Credit Suisse had not moved to dismiss on its earlier motion. Plaintiffs premised their claim for breach of contract on allegations that Credit Suisse breached its contractual obligations to investors in the loans to review and approve the appraisals. During oral arguments on Credit Suisse’s motion for summary judgment, Weil argued that the provisions the plaintiffs relied on were obligations of the borrowers, not Credit Suisse. Following oral arguments, the Court granted Credit Suisse’s motion, and dismissed the remaining claim.
This victory comes just two months after Weil secured a summary judgment victory for Credit Suisse in a separate case brought against funds managed by Highland Capital in the same Court. In that case, Credit Suisse alleged that affiliates of Highland Capital failed to settle trades they entered into in 2008 with respect to loans that Credit Suisse had arranged to third-party real estate developers. The Court granted Credit Suisse’s motion, and awarded our client over $77 million, including 9% interest dating back to 2008.