Houston, TX (Law Firm Newswire) June 18, 2012 - Andrews Myers, a Houston-based commercial real estate law firm, recently consummated a settlement and obtained dismissal of all claims brought by a mortgage backed securities lender against one of its corporate real estate development clients and its principal representative. The Federal Court litigation had been highly contested and began when the lender attempted to obtain an order appointing a receiver over the client, its operations and its accounts in the fall of 2010. Andrews Myers convinced the Court the receivership would be unworkable, impractical and unwarranted. Despite this ruling, the lender took steps to commence foreclosure proceedings and forced the client to file bankruptcy.
While pursuing its claims in the Bankruptcy Court, the lender continued to pursue the individual client on his personal guaranty. The District Court did indeed grant the lender’s motion for summary judgment for more than full extent of the corporation’s debt. After considering the motion for rehearing filed by the firm, the Court was persuaded that to allow the case to proceed could lead to prejudicially inconsistent results. The Court granted the firm’s motion to stay the ruling to allow the corporate bankruptcy to be completed. With the assistance of the business bankruptcy lawyers at Andrews Myers, bankruptcy counsel obtained court approval for a favorable plan of reorganization over the lender’s objection.
The combined result of the confirmation of a favorable plan of reorganization and the staying of the trial court’s ruling made any further pursuit of the corporate and individual client by the lender untenable. The end result of the parallel litigation allowed the client to retain its business operations and its property, a reinstatement of the loan on its original terms and a dismissal of the lender’s claim against the individual guarantor. Bill Andrews, Patrick Hayes and Bob Plessala represented the firm.
Founded in 1990, Andrews Myers, Attorneys at Law, is a corporate law firm and recognized market leader in Texas construction law. The firm focuses on the concentrated disciplines of construction, commercial real estate, corporate and business transactions, with additional emphasis on related issues including bankruptcy and insolvency, employment and capital formation. Our attorneys provide timely and cost-effective solutions to the most complex problems facing entrepreneurs and industry leaders throughout the state and the nation.
For more information, visit www.andrewsmyers.com.
Andrews Myers P.C.
3900 Essex Lane Suite 800
Houston, TX 77027