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New York Community Bank v. Sherman Avenue Associates, LLC

786 F. Supp. 2d 171 (2011)

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New York Community Bank v. Sherman Avenue Associates, LLC

United States District Court for the District of Columbia
786 F. Supp. 2d 171 (2011)

JL

Facts

New York Community Bank (plaintiff) entered into five separate loan agreements with five separate legal entities (defendants). The collective total amount of the loans was more than $17 million. The bank and two trustees (plaintiffs) filed a petition to appoint receivers for the legal entities. The petition alleged that the legal entities had defaulted on the loan agreements, that the bank was planning to foreclose, and that receiverships were necessary to prevent spoliation and fraud by the legal entities. No complaint was filed alleging breach of contract or seeking judicial foreclosure.

Rule of Law

Issue

Holding and Reasoning (Howell, J.)

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