In connection with a Motion to Dismiss, Richard Gentilli successfully argued that a counterclaim alleging bad faith by a lender should be dismissed. In its The Counterclaim, the borrower argued that the lender was rash and unfair in enforcing both the default and demand provisions of its loan documents.
The borrower claimed that the lender was fully collateralized and had no reason to pursue its remedies aggressively. In doing so, the borrower contended, the lender acted in bad faith. On behalf of the lender, Mr. Gentilli argued that enforcing the terms of the loan documents could not be considered an act of bad faith by the lender where the borrower was unquestionably in default. The Superior Court agreed that the loan documents were fully enforceable on demand by the lender, and that the lender was under no obligation to forbear from exercising rights and remedies.
Read the decision here: MA Superior Court Action 17026467
Richard Gentilli has successfully represented lenders on lender liability claims for over four decades.