March 22, 2024
On March 22, 2024, Schlam Stone & Dolan attorneys Jeffrey M. Eilender, Joshua Wurtzel, Jessica Caterina, and Paul S. Stretton defeated a motion to dismiss brought by a commercial lender that had conducted a U.C.C. foreclosure on Schlam Stone’s client’s interest in a hotel development near Penn Station. Schlam Stone had alleged that the lender—an affiliate of distressed-debt fund Maverick Real Estate Partners—violated the U.C.C. by conducting the foreclosure in a commercially unreasonable manner and by buying the interest itself, using a credit bid, for an amount that was too low. Maverick moved to dismiss, arguing that the terms of its foreclosure sale were commercially reasonable and that the price it paid was sufficient as a matter of law. In denying Maverick’s motion, the court rejected Maverick’s arguments that the terms of sale and the price paid were sufficient as a matter of law, and permitted Schlam Stone’s client to attempt to prove its claims through discovery.
Read the full decision here.