James Froberg, a member of Lowis & Gellen’s Corporate Practice Group, participated as a guest speaker at the Chicago Bar Association’s Commercial Finance & Transactions February 2010 meeting to discuss Lender Liability Issues at the CBA’s headquarters in Chicago, Illinois.
With financial adversity and hard times continuing to affect the national economy broadly it is not unexected that there is renewed focus on lender liability in the commercial and consumer market place. Lender liability is made up of a body of common and statutory law covering a broad spectrum of claims. Claims may arise under the a wide array of theories as well as new theories as this area of the law evolves: For purposes of the Committee’s discussion of Lender Liability the focus was on on Common Lender Liability Theories in Contract and Tort in commercial transactions. The presentation also discussed the importance of The Illinois Credit Agreements Act in defusing certain elements of lender liability in Illinois as well as the importance of periodic portfolio review and the use of forbearance agreements in mitigating or avoiding liability. The discussion also covered a few recent cases addressing lenders from liability under a couple of old and new theories. The presentation also addressed some strategies for managing and reducing the risks of lender liability.
Lowis & Gellen’s Corporate Practice Group represents public and private companies in connection with a wide variety of transactions, including mergers, stock purchases and asset acquisitions, divestitures, leveraged buyouts, restructurings and other transactions involving changes in corporate control. For more information on Lowis & Gellen’s Corporate Practice Group, please contact James Froberg at jfroberg@Lowis-Gellen.com or (312) 456-2718.
With financial adversity and hard times continuing to affect the national economy broadly it is not unexected that there is renewed focus on lender liability in the commercial and consumer market place. Lender liability is made up of a body of common and statutory law covering a broad spectrum of claims. Claims may arise under the a wide array of theories as well as new theories as this area of the law evolves: For purposes of the Committee’s discussion of Lender Liability the focus was on on Common Lender Liability Theories in Contract and Tort in commercial transactions. The presentation also discussed the importance of The Illinois Credit Agreements Act in defusing certain elements of lender liability in Illinois as well as the importance of periodic portfolio review and the use of forbearance agreements in mitigating or avoiding liability. The discussion also covered a few recent cases addressing lenders from liability under a couple of old and new theories. The presentation also addressed some strategies for managing and reducing the risks of lender liability.
Lowis & Gellen’s Corporate Practice Group represents public and private companies in connection with a wide variety of transactions, including mergers, stock purchases and asset acquisitions, divestitures, leveraged buyouts, restructurings and other transactions involving changes in corporate control. For more information on Lowis & Gellen’s Corporate Practice Group, please contact James Froberg at jfroberg@Lowis-Gellen.com or (312) 456-2718.
