Loeb & Loeb LLP secured an important victory on behalf of New York Community Bank in a $50 million lender liability suit, when the New York Supreme Court of Nassau County granted the Bank's motion to dismiss a complaint alleging that the Bank breached the terms of a loan agreement and acted in bad faith by withholding funds under a credit facility extended to Better Homes Depot, Inc.
The plaintiff brought the action alleging that its business of buying and renovating distressed properties was destroyed when the Bank terminated its revolving line of credit without notice and without good cause. The judge sided with the Bank on the basis of documentary evidence. The Court ruled that the loan agreement between the parties provided that the Bank had the contractual right to stop making new loans at any time, and that the Bank had compelling business reasons for doing so.
New York Community Bank was represented by Helen Gavaris and Tal Dickstein in the New York office of Loeb & Loeb.