ZEK’s representation of creditors in financial services litigation exemplifies the diversity of its practice and the depth of its experience.

The financial services industry has long been one of the most complex and highly regulated. ZEK’s history and experience in representing financial institutions, commercial mortgage lenders, CMBS servicers, residential servicers and private equity firms has prepared it to assist clients in virtually every type of financial services creditor litigation.

ZEK’s representation of creditors in financial services litigation exemplifies the diversity of its practice and the depth of its experience. Sophisticated clients recognize that achieving a successful result in litigation is a function of the professionalism and competence of counsel, and involving much more than simply prosecuting or defending a lawsuit. Because of our broad, multi-disciplinary experience we litigate efficiently and effectively even the most complex issues that arise in financial services litigation. Over the years, we have earned our financial clients’ trust for our handling of litigation of such matters successfully with efficient, price advantaged results.

Examples of our representation include:

Asset Recovery and Workout

ZEK is highly skilled in enforcing and restructuring both portfolio and CMBS loans, including resolution of disputes between and among lenders and borrowers, guarantors, tranches of noteholders, competing lienors, mezzanine lenders and servicers. The Firm is particularly adept at using litigation as a tool to leverage and expedite favorable loan recoveries and workouts. We are known for our ability to uncover and prove fraudulent schemes and to obtain payment from even the most recalcitrant borrowers and guarantors.

Our asset recovery work necessarily results in our handling defense of claims against lender clients. Such issues arise either as defenses asserted in actions by clients to recover against borrowers because of defaulted credit extensions or as actions commenced by borrowers against lenders to avoid repayment of their financial obligations. ZEK has represented its lender clients in a variety of such defense matters, from claims of lender liability to actions claiming violations of various consumer laws and claims of alleged usurious interest charges, open and closed end credit notices (including credit cards), deceptive business practices, discriminatory practices, federal and state disclosure law violations, breach of fiduciary duty and factoring issues. There is probably no type of debtor claim against a lender that ZEK has not handled for clients.

As well seasoned creditors’ counsel, ZEK has substantial experience in handling debt recovery and related claims in Bankruptcy Court. We have experience in representing official committees, DIP lenders, secured lenders, senior creditors, holders of subordinated debt, and holders of unsecured debt. We also have expertise in representing special servicers in connection with bankruptcy restructuring of loans forming part of pools of collateralized mortgage-backed securities. ZEK’s practice also includes bankruptcy litigation, particularly in connection with preference and fraudulent transfer claims.

ZEK is a well-known member of the bankruptcy bar in the courts in which it practices. The firm has a deserved reputation for making short shrift of debtors’ inappropriate bankruptcy claims. When appropriate, ZEK attorneys take this lead in terminating bankruptcy proceedings brought on by debtors or obtaining relief to obtain payment for our creditor clients in Bankruptcy Court.

Commercial Foreclosures

ZEK has substantial experience in representing commercial mortgage lenders, CMBS servicers and private equity firms in commercial foreclosures of all types of properties, many of which include the appointment of receivers and the attendant complexities and challenges inherent in such appointments. We are adroit in navigating the most difficult and nuanced matters including foreclosure sales under the Uniform Commercial Code of membership interests in corporate borrower entities. The Firm has successfully enforced, over commercial borrower’s objections, commercial loan instruments providing for default interest, yield maintenance and pre-payment consideration. ZEK has also successfully defended claims of lender liability and challenges to the enforceability of pooling and servicing agreements, to a lender’s status as a holder-in-due course and bona fide purchaser for value and claims of bad faith and breach of fiduciary duty.

Mortgage Defense Litigation

ZEK understands this industry, including pressures on lenders resulting from dealing with borrower and obligor defendants in default, the many ways they respond to such cases, and last, but not least, the changing requirements imposed by legislation and the courts. Because ZEK’s clients have understood the breadth and depth of our bank expertise, they have always turned to us to handle and resolve the most difficult of problems including claims growing out of mortgage origination and servicing issues, and allegations of mortgage fraud, predatory lending, and violations of state and federal consumer protection statutes. Our knowledge of the relevant law and issues, and our acumen have resulted in a high level of success at both trial and appellate courts, along with substantial cost savings for our clients.

Appeals

ZEK has a proven track record in representing creditors in appeals arising out of commercial and residential lending litigation. We provide aggressive, creative, and practical representation for clients who look to us to preserve their victories or rectify lower court errors on appeal. Our appellate team includes attorneys who have served as appellate court law clerks. Their foundational “inside” experience supports the persuasive appellate briefs and arguments our lawyers formulate and present to protect clients’ interests.