Lead Attorneys: Simon H. Bloom, III

In this challenging real estate market and national economy, our clients find themselves confronting major challenges while interacting with their lenders and creditors. The once harmonious relationships between lender and borrower are turning confrontational as projects fail to sell, developments stall, debt service ceases and collateral depreciates.

When facing such challenges and a deterioration of the lender/borrower relationship, our attorneys focus first and foremost on seeking compromise and a middle ground. The goal from the outset is to preserve the collateral, seek creative options to a workout plan and strive to return the parties as close to whole as possible. This approach generally involves extensive negotiations among the lender/borrower/guarantors and often is aided by the assistance of other professionals in the real estate community such as appraisers, market experts, contractors and financial consultants.

As repeat players in this space, the lawyers at Bloom Sugarman Everett have extensive relationships with the leading lenders in the Southeast, their special asset departments, workout specialists and other professionals. These relationships go a long way toward seeking the common ground and cooperation required to reach a successful workout plan. Some lender/borrower relationships cannot be saved and one must resort to other options – litigation. We know of no firm in the Southeast that has more experience or success in litigating these matters than Bloom Sugarman Everett.

Recent Wins:

• Victory Prevents Bank from Pursuing $1.5M Deficiency Judgment
  Successfully defeated confirmation of foreclosure sale by Decatur first bank and the FDIC. BSE Partner Skip Sugarman defeated an attempt to confirm the foreclosure sale of commercial property in Monroe, Georgia. The judge denied confirmation based on the cross- examination of the bank’s appraiser without even requiring the debtor to put on any evidence. This victory prevented the bank from pursuing a $1.5 million deficiency judgment against the borrower or guarantor.
• Defeated Rialto Capital Management Receivership
  Successfully defeated a receivership petition filed by Rialto Capital Management. Rialto moved to appoint a receiver to manage and control a multi-million dollar residential condominium project owned by a BSE client. BSE Partner Simon Bloom persuaded the court that a receiver was unnecessary and that Rialto failed to demonstrate a compelling need for a receiver. Defeating Rialto’s receivership petition allowed our client to continue to manage and control its project.
• Defeated Bank’s Deficiency Action Against Alleged Guarantor
  In this case, the bank foreclosed on the collateral and sought to confirm the sale. BSE attorneys immediately recognized a deficiency in the bank’s confirmation filings for failing to name and serve the correct parties. Later, when the bank sued a guarantor who was not named in the earlier confirmation action, BSE filed a motion to dismiss. In an Order adopting BSE’s arguments in their entirety, the Fulton County Superior Court Judge dismissed the case against the guarantor.
• Defeated Confirmation of Foreclosure Sale
  Successfully defeated confirmation of foreclosure sale by BB&T. BSE defeated an attempt to confirm the foreclosure of residential property in Gwinnett County. The judge denied confirmation after BSE’s cross-examination of the Bank’s appraiser and after determining that the Bank didn’t sell the property at foreclosure for fair market value. This victory prevented the bank from pursuing a significant deficiency judgment against the borrower and guarantor.
• Groundbreaking Recognition of Florida Defense
  Successfully defeated a Bank’s motion for summary judgment on the affirmative defense of temporary commercial impracticability. BSE Partner Simon Bloom argued that because the real estate market crash was a completely unforeseen event beyond the party’s control, the Developer should be temporarily excused from performance. The Court denied the Bank’s motion and allowed the affirmative defense to go forward, making a groundbreaking recognition of the defense in Florida.