BGD Litigation Team Receives Summary Judgment Regarding Hotel Foreclosure and Sale in Spite of Defendants’ Objections
A Bingham Greenebaum Doll LLP trial team lead by Financial Institution Litigation Team co-leader Bruce A. Smith and attorney Meagan R. Brien were triumphant on behalf of their client in Owensboro, Kentucky earlier this month. The complex and time-consuming case has been contested at every turn.
Firm attorneys represented a financial institution in litigation after the hotel owner defendant defaulted on its Promissory Note, Mortgage, and supporting loan documents (which loan was obtained to purchase a hotel in Owensboro, Kentucky).
In December 2015, BGD filed the client’s Complaint for Breach of Note, Replevin, and Foreclosure of Mortgage, and to Appoint Receiver. After contested hearings and objections by the hotel owner defendants, the BGD team successfully obtained an Order appointing the Receiver selected by the client to manage and maintain the hotel in February. Then, despite the objections of defendants, and after another contested hearing, the Court entered Summary Judgment, Decree of Foreclosure, and Order of Sale in favor of their client on May 4, 2016. Smith and Brien also secured the Court’s appointment of the commercial auctioneer preferred by their client and by the junior lienholder, the U.S. Small Business Administration, over the objections of the hotel owner defendants.
Smith and Brien had a very successful outcome, receiving Judgment against the Borrower and the two guarantors for nearly $2,800,000, foreclosure of the mortgage lien on the subject hotel and equipment, and obtaining approval of the use of the client’s requested auctioneer, Hilco Real Estate Auctions LLC. As a result, the hotel will be sold by the commercial auctioneer at a Master Commissioner’s Sale in June 2016; Hilco anticipates that the Country Inns and Suites property will sell for a price that will sufficiently repay their client in full.
A vice president of the financial institution client stated: “Bruce and Meagan worked very hard on this case, and did an outstanding job keeping us informed at each step of the proceedings while handling the matter professionally and promptly. The foreclosure and receivership process met our hopes for the “best case scenario,” and we remain completely impressed by both attorneys and the positive way in which they were able to handle our compliant and resolve this dispute.”
Smith focuses his practice on banking litigation matters in state and federal courts, including creditor’s rights, and representation of lenders in bankruptcy proceedings. He is experienced in the representation of lenders in connection with loan workouts, restructuring and commercial transactions. Brien focuses her practice on commercial litigation, business/corporate law, and estate planning and probate administration.