Gray•Duffy Negotiates Favorable Settlement in Bank Foreclosure Litigation

July 2013

Overview

Rick Williams of Gray•Duffy’s Redwood City office represented various commercial property owners in breach of contract and foreclosure litigation involving the foreclosure of commercial properties in Sonoma, California.

Discussion

West America Bank v. Hariri, et al. In 2008, Sonoma Valley Bank instituted foreclosure proceedings against the owners of several commercial properties in Petaluma and Santa Rosa, California, which were owned by Gray•Duffy’s clients. Shortly thereafter, Sonoma Valley Bank closed its doors and its loans were taken over by the plaintiff, West America Bank. After acquiring the loan portfolio from the predecessor bank, West American Bank vigorously pursued the litigation against the property owners, based upon the notes held by the predecessor bank on the commercial properties which were in default. After several rounds of discovery and intense negotiations spanning several months were undertaken, notes totaling in excess of $6,000,000 were ultimately compromised for payments of approximately $2,000,000, spread over a five year period.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.