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Equipment Lessor – $53 Million Portfolio

Moritt Hock & Hamroff LLP recently represented a major equipment leasing and financing source against an originator of leases concerning a $53 million portfolio. The Firm’s client provides leasing and financing services as a funding source to finance the acquisition of equipment purchased by originators of such leases. In accordance with the client’s Private Label Program, the client was assigned such leases while the originator continued to service the customers and end-users. A dispute arose as to the breaches of the underlying program agreements by the originator, as well as the apparent fraud, conversion and misrepresentation of the originator and its principals affecting the portfolio and lessees throughout the country.

Initial negotiations were unsuccessful in resolving the matter and the litigation group assisted the client in defending the originator’s action, vigorously prosecuting the client’s counterclaims against the originator and its principals and assuming the servicing functions of the remaining portfolio. The Firm aggressively conducted pre-trial proceedings, including depositions of parties and non-parties throughout the country and obtained attachments, preliminary injunctions and temporary restraining orders in favor of our client. The claims asserted by the Firm were later mirrored by other lenders against the originator which, eventually, led to a Federal indictment filed against the Plaintiff and its principals for, among other things, bank fraud. Thereafter, the Firm negotiated a favorable settlement for its client and has assisted the client in efforts to receive restitution in the Federal criminal proceedings. (A related Federal Court action instituted by the originator against the client for alleged violations of federal anti-trust laws including the Sherman Act, the Clayton Act and the Robinson-Patman Act was dismissed by motion prior to trial.)

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