Financial Services Litigation

Our Financial Services Litigation attorneys provide transactional, legislative, litigation, and counseling services to a large and diverse group of financial institutions and financial service providers, as well holding companies and investors in such institutions.

At Gonzalez Saggio & Harlan LLP (”GSH”), our financial services litigation attorneys represent national, regional, and local clients on a number of issues affecting financial institutions, both in common and complex settings. We understand that our clients depend on timely, effective, and cutting edge solutions to address their needs. Our team of lawyers has the experience and perspective to advise our clients and provide solutions when significant problems arise. We have extensive experience representing financial institutions against claims made under the Fair Credit Reporting Act (FCRA), the Fair Debt Collections Practices Act (FDCPA), the Truth in Lending Act, and the Real Estate Settlement Practices Act (RESPA); and we have collectively litigated and arbitrated hundreds of business disputes, including those involving securities, annuities, insurance, mortgage and consumer fraud, fraud, RICO, contract disputes, professional negligence and other misconduct, foreclosure and bankruptcy.

Our attorneys have been successful defending both class and individual suits in trial and negotiating advantageous settlements for our clients. At present, we represent national lenders in both state and federal courts, including appellate matters before the Seventh and Ninth Circuit Courts of Appeals. In addition to defense under federal consumer statutes, GSH has extensive experience defending consumer credit claims made under the Wisconsin Consumer Act, New Jersey Consumer Fraud Act, Indiana Fair Debt Collection Act, and the Iowa Consumer Act.

GSH attorneys provide comprehensive counsel to depository and non-depository institutions on state and federal laws, compliance, and enforcement matters, including risk control, permissible investments, licensing, and other regulatory issues. In this area of practice, our attorneys have represented commercial banks, thrift institutions, credit unions, and specialty finance companies. Our attorneys are experienced in dealing with the requirements under the Foreign Corrupt Practices Act (FCPA) and the Gramm-Leach-Bliley Act (GLBA).

GSH has successfully represented different financial institutions in enforcing large commercial loan agreements and guarantee agreements and in lender liability claims raised by borrowers in defense of those claims. We have handled claims under the Federal Electronic Funds Transfers Act, as well as common law claims, such as wrongful repossession, garnishment orders, and check forging for one of the nation’s largest bank-based financial services company. Our attorneys have handled matters involving the defense of both lender liability and predatory lending claims; lender liability claims related to the alleged fraudulent actions of loan officers within a work-out group; disputes related item processing, account processing, and lending agreements; lien priority disputes of mortgage interests; probate and trust disputes; foreclosures; and replevin actions.

Our financial services litigators also have experience in implementing compliance programs in accordance with agency regulations, participating in internal audits and in investigations brought by federal regulatory and self-regulatory agencies. GSH represents financial service companies with other regulatory issues related to formation, product offerings, and governance. Our team counsels and assists financial sector firms with respect to reporting requirements, executive compensation and employee benefits, Sarbanes-Oxley (SOX) policies and procedures, and consumer privacy.

Representative Experience

• Ongoing representation of Fortune 100 Financial Institution and its subsidiaries in consumer litigation in several states involving claims under the Fair Credit Reporting Act, other federal and state debt collection statutes and regulations, and title issues arising out of consumer mortgage loans, credit card, and student loans.
• Represented major bank acting as trustee for a trust which contained a commercial property valued in excess of $2 million. In the process of a sale of the property, a Deed of Trust was discovered on the title. The beneficiaries were requested to deliver the underlying note to the escrow with a demand for payment. The beneficiaries claimed they could not locate the promissory note or other documentation to prove the validity of the purported Note. The beneficiaries claimed the face amount of the Note plus interest which totaled approximately $800,000. Litigation was initiated against the trustee to establish the existence of the obligation and to enforce collection.
• Ongoing co-counsel for Fortune 100 Financial Institution in various consumer class actions and qui tam cases in federal district and state courts in Indiana, Iowa, and New Jersey, brought under state consumer fraud loan statutes relating to mortgage assignments, transfers, and state recording taxes.
• Ongoing counsel for Fortune 250 National Retailer in defense of Fair Credit Reporting Act and state consumer law actions relating to department store credit cards issued in New Jersey and New York.
• Plaintiffs filed a multi-count suit against national bank for fraud in connection with an application for financing of a family owned business. The family members also tried this case in the press and presented the matter as a big corporate bank riding over a “mom and pop” shop. The family also claimed race discrimination and got various ethnic groups and politicians involved. GSH filed a motion to dismiss with prejudice all counts of a multi-count complaint and the plaintiffs voluntarily dismissed their case after originally asking for millions of dollars.
• Represented bank regarding a loan for the purchase of a boat for $700,000, where Plaintiff’s company guaranteed the loan and then defaulted. Predecessor counsel to GSH threatened the debtors with a lawsuit if they didn’t pay the balance due. Instead of paying, the debtors preemptively filed their own claim against the Bank, alleging negligent loan processing, fraud, and breach of contract based on the Bank allegedly losing some of the loan paperwork. GSH then got the case and filed counterclaims for repossession of the collateral and to recover the balance of the loan. We received summary judgment, thereby, dismissing the debtors’ claims against the Bank, as well as the liability aspect of our counterclaims and for debtors defaulting on the loan. Fees and expenses incurred in the collection effort were awarded to the defense.
• Successfully handled appeal to the Ninth Circuit of the United States Court of Appeals on behalf of large financial institution to reverse a remand order of the United States District Court for the Central District of California. The lawsuit was a putative class action arising out alleged violations of local rent control ordinances concerning property acquired by the Company by foreclosure. We removed the case to federal court, and six months later, the district judge remanded the case. The Ninth Circuit agreed with our arguments that the district court had no authority to remand the case, and the district court’s finding of waiver was erroneous.
• Handled contested foreclosures on behalf of servicers/lenders in a defensive role against debtors at all stages of the foreclosure process (defending against debtor’s suits to enjoin a pending foreclosure, defending against debtor’s suits to strip lenders of their security interest due to title defects or other origination issues, defending against debtor suits for foreclosures already completed, and ascertaining liability amongst servicers where a loan had been assigned).
• Represented Fortune 100 Financial Services Corporation in a motion to open a default judgment with regard to a foreclosure, which was settled without further hearing.
• Ongoing representation of Fortune 250 Tax Preparation Financial Services Corporation and its subsidiaries in suits brought by clients involving claims of failure to secure tax refunds and financing of tax refunds through federal chartered saving bank.
• Represented large banking client with issues pertaining to the real estate and large checking account established prior to a decedent’s second marriage. Decedent had named the second wife as his beneficiary, and she retrieved the contents of the checking account. Issues arose when the decedent, survived by four children (two from a previous marriage) and his second wife, executed a Trust, but he did not convey the residential home to the trust and gave a life estate in the home to his spouse.
• Defended case at the Court of Appeals level for a housing lending authority that foreclosed on a property where the borrower was in default. The borrower asserted numerous counterclaims against our client. We were granted summary judgment before the trial court and the borrower appealed. The appellate court affirmed the trial court in its entirety.
• Responded on behalf of a large financial institution (as a third party deponent on a deposition subpoena) for production of business records, which arose out of a petition by the children/beneficiaries of a family trust. This involved millions of dollars of assets and production of thousands of documents. GSH partially responded to the subpoena and was in the process of sorting through documents; however, activities were put on hold when the parties engaged in settlement negotiations.
• Successfully defended claims involving wrongful foreclosure, fraudulent lending practices, wrongful eviction, and appeals on behalf of lenders by obtaining favorable outcomes.