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Specializing in insolvency and complex commercial matters since 1974

Firm Successful In Defending Deficiency Action In Foreclosure Lawsuit - July 26, 2013

The firm defended several guarantors in a motion for deficiency judgment filed by TD Bank (the “Bank”) in Marion County Circuit Court. In the motion, the Bank requested a deficiency judgment in the amount of approximately $2,850,000.00 – the difference between the debt of approximately $4,900,000.00 and the Bank’s appraised value of $2,050,000.00. In representing the defendants, the firm countered with an appraised value of $4,100,000.00 and an argument that the debt should be further reduced because of the Bank’s delay in obtaining a foreclosure judgment after the defendants consent to foreclosure. Following a non-jury trial, the Circuit Court agreed with the defendants’ expert regarding the value and adopted the value of $4,100,000.00. Additionally, the court found that as an equitable matter the lower non-default rate of interest (rather than the default rate) should apply from the date that the defendants consented to foreclosure through the date of the foreclosure judgment. The firm’s efforts resulted in a $2 million reduction in the amount of the judgment. Edward J. Peterson was trial counsel for the Defendants.