Summary Judgment Granted Relieving Client of Deficiency Balance After Foreclosure
Successfully obtained summary judgment in client’s favor in a suit by a national Bank seeking to collect the balance due on a defaulted commercial loan. After foreclosing on the subject collateral property, the Bank failed to confirm the foreclosure sale but still filed suit against our client, the loan’s guarantor, for the deficiency balance remaining after the sale – approximately $800,000 plus interest and attorney’s fees. The Bank argued that our client’s guaranty was sufficient under the HWA Properties line of cases to allow the bank to sue without confirmation. Bloom Sugarman moved for summary judgment on the Complaint and argued that the guaranty in question did not rise to the level of HWA Properties and that confirmation was a condition precedent to the Bank being able to recover against our client. After reviewing the briefing and hearing oral argument, Judge McBurney sided with Bloom Sugarman and granted our summary judgment motion thereby relieving our client of any possible remaining liability in this matter.