California Court of Appeal Affirms Judgment In Favor of Private Commercial Lender

Attlesey | Storm, LLP, represented a hard money lender in a lawsuit brought by a borrower in Los Angeles Superior Court (Glendale) claiming usury, unconscionability and bid chilling in connection with a $3.6 million dollar loan. After a five-day bench trial, the Court entered judgment in favor of the lender.The court concluded that the borrower had fraudulently induced the lender to make the original loan and the 25% default interest rate charged by the lender was conscionable.Based upon these findings, the Court further determined that the borrower was not entitled to any surplus proceeds that may have existed after the foreclosure sale.The plaintiff appealed.

After successfully defending its commercial lending client at trial in the Los Angeles Superior Court against Plaintiff’s claims that the lender’s rates on a $3.6 million dollar loan were usurious and that it was entitled to over $1.2 million dollars in surplus proceeds, Attlesey | Storm, LLP again defended its client in the appeal.On November 26, 2012, attorney Suzanne S. Storm received a unanimous decision from California’s Second District Court of Appeal-Division 8 affirming the trial court’s judgment and awarding costs to Attlesey | Storm, LLP’s client.Read the Court’s opinion here.