Spencer Fane attorney Scott Sandberg recently provided insight into increased risk of Lender Liability Litigation (LLL) and how lenders can minimize the damage or eliminate it altogether in an article for the most recent edition of the Independent Bankers of Colorado’s Independent Report.
Titled “Lender Liability Litigation: What You Need to Know,” Sandberg first outlines what LLL looks like as risk to lenders increases and proactive steps to take to deal with the risk. LLL claims include breach of the covenant of good faith, fraud, and breach of fiduciary duty.
“While LLL has yet to spike significantly in response to the COVID-19 crisis, past experience dictates that the spike is coming,” Sandberg wrote. “But LLL can and should be largely avoided and minimized with good lender practices and involving counsel.”
To read the full article, please click here and see page 28.