Anthony Ostlund successfully challenges bank loan documents on behalf of residential real estate developer
"Bank loan documents are very difficult to challenge. To be successful in this case we needed to look beyond the obvious to find the buttons that would get the Bank to focus on solving the problem with our clients. That kind of creativity sets Anthony Ostlund apart." --Norman J. Baer
Our clients were personal guarantors of loans made by RiverBank to Biermann, a residential real estate developer. When the real estate bubble burst Biermann, like many other developers, defaulted on his loans with RiverBank. The loans were called and the Bank focused on the guarantors who, unlike Biermann, had the ability to pay the debt.
In this case, Anthony Ostlund took its favored approach – although we were representing individual defendants who had executed and delivered guarantees that looked solid on their face, we went on the offensive. We learned that RiverBank had been less than diligent in their handling of the loans to Biermann. We found and exploited every mistake the Bank had made in its handling of loan advances, loan payments, and related documentation. But, the Bank had its written guarantees and was confident of success in the court, so no negotiated deal could be made.
RiverBank became much more flexible in its negotiations after Anthony Ostlund was able to defeat the Bank’s motion for summary judgment. Suddenly the Bank was facing risk about the enforceability of not just these guarantees, but also other guarantees related to other loans in which the Bank’s practices had been less than pristine. Our clients were able to resolve all issues with RiverBank for a small portion of the amount that was due under the express terms of the guarantees.
The RiverBank v. Biermann Investment, LLC, et al.
Polk County, Wisconsin Circuit Court