Adam Leitman Bailey, P.C. Ensures Delinquent Corporate Debtor Repays Substantial Debt to Manhattan-Based Bank
Adam Leitman Bailey, P.C. was contacted by a bank based out of Manhattan to aggressively pursue a delinquent corporate borrower and its guarantor of a commercial loan. Attorneys at the firm conceived and executed a strategy to ensure that the debt would be paid without expensive and protracted litigation.
Adam Leitman Bailey, P.C. filed a motion for summary judgment in lieu of filing a complaint. This strategy had two substantial benefits for Adam Leitman Bailey, P.C.’s client. First, it saved the client money by reducing the litigation costs of filing pleadings. Second, it gave the court the power to render a judgment in Adam Leitman Bailey, P.C.’s favor in a much shorter time frame.
The delinquent borrower reacted almost immediately to Adam Leitman Bailey, P.C.’s motion by contacting the bank. The borrower and guarantor feared a judgment in the full amount demanded by Adam Leitman Bailey, P.C.’s action and contacted Adam Leitman Bailey, P.C.’s client to settle.
Adam Leitman Bailey, P.C. conducted a background investigation on the borrower and guarantor so that it could be determined whether they had the assets to pay back this debt. During Adam Leitman Bailey, P.C.’s investigation, Adam Leitman Bailey, P.C. also compared other civil actions involving the borrower or guarantor and developed a settlement strategy.
Ultimately, the borrower agreed to the terms of a new commercial loan agreement, including the payment of legal fees. The attorneys of Adam Leitman Bailey, P.C. anticipated, however, that the borrower could simply refuse to pay under this new agreement. If that happened, the settlement of Adam Leitman Bailey, P.C.’s motion would have only led to another round of litigation and cost Adam Leitman Bailey, P.C.’s client thousands of dollars in legal fees.
In order to prevent that result, an additional condition was required—the execution of an affidavit signed by the borrower and guarantor admitting to the underlying debt, the breach of their payment obligations, and that they duly owed Adam Leitman Bailey, P.C.’s client the amount demanded in the action, including default interest and attorneys’ fees.
If the borrower and guarantor breach their obligations on the new commercial loan agreement, this affidavit will allow Adam Leitman Bailey, P.C.’s client to obtain an immediate judgment against them for the underlying debt, with interest, with attorneys’ fees, and without Adam Leitman Bailey, P.C.’s client having to start another costly and time-consuming lawsuit.
The borrower is currently complying and paying back the debt.
Adam Leitman Bailey and John M. Desiderio were the managing partners on the case.