Jackson Walker recognizes there is no substitute for experience and training in focused fields of litigation. JW’s Banking Litigation Group spans the Firm’s statewide presence and decades of experience representing all sizes and types of financial institutions through bet-the-company lawsuits, receiverships, and early-resolution consumer disputes alike. With a deep, working knowledge of state and federal banking and consumer laws and Jackson Walker’s hallmark pragmatism, the Banking Litigation Group prides itself on providing efficient and effective advocacy to financial institutions.
Whether guiding a state-chartered bank through high-profile litigation, defending a national bank against a lender liability lawsuit in Texas or federal court, or serving as Texas or national coordinating counsel for multi-district consumer litigation, the Banking Litigation Group’s work is characterized by deep legal experience, top-notch courtroom savvy, and sensitivity to regulatory and organizational dynamics.
We also understand that bankers have budgets, and that litigation sometimes disrupts financial cost centers and group budgeting. We work with our banking litigation clients to accurately forecast legal fees, address case developments as they arise, and match litigation strategy to client goals. Jackson Walker recognizes that negotiation and settlement of claims is often in our clients’ interest, and we have been successful in favorably settling claims brought against our banking clients.
- Represented senior lender in litigation filed by multiple junior lenders and holders of mezzanine debt over a $7 billion collateralized mortgage backed obligation. Senior lenders were sued in multiple jurisdictions, including Texas, during an attempted restructure of the obligations with the borrower. Junior lenders sought to enjoin the restructuring agreement. Action against clients was dismissed.
- Represented an international financial institution and its investment bank subsidiary in defense of an action claiming misrepresentations in connection with the sale of $60 million in mortgage backed securities. Suit involved purchase of two pools of subprime residential mortgage loans by a hedge fund. Plaintiffs asserted claims for securities fraud and general fraud under federal, state, and common law. After removing the case from state court in Dallas County, Northern District of Texas Federal District Court Judge Sam Lindsay rejected a motion for remand and dismissed the case with prejudice. On appeal to the 5th Circuit, the trial court was affirmed in a case reported Lone Star Fund V, L.P. v. Barclays Bank, PLC, 594 F.3d 383 (5th Cir. 2010).
- As lead counsel, successfully represented JPMorgan Chase Bank, N.A., in a putative class action case involving home equity loan modifications. The suit sought to invalidate “at least thousands” of class members’ home equity loans, on the alleged grounds that the modifications violated various provisions in the Texas Constitution. The class action complaint was dismissed and the court held that the home equity loan modifications did not violate the Texas Constitution. Hawkins v. JP Morgan Chase Bank, N.A., No. 13-50086, 2015 WL 3505353, 2015 U.S. App. LEXIS 9442 (5th Cir. Tex. June 4, 2015)(unpublished)(affirming dismissal of putative class action challenging restructurings of home equity loans that allegedly capitalized past-due interest, fees, taxes, and escrow as violating the Texas Constitution, but remanding to district court as to one claim to determine if a single restructured loan with an alleged balloon payment involved an increase in the obligations created by the original note; dismissed by plaintiff on remand).
- Successfully represented Chase Bank USA, N.A. in a putative class action seeking to establish a duty of good faith and fair dealing under Delaware law in connection with certain business credit card transactions. Plaintiff contended that the bank’s allocation of payments between a promotional offer balance and the credit card balance breached an implied duty in the account agreement. The action was dismissed for failure to state a claim in the district court. The United States Court of Appeals for the Fifth Circuit affirmed the decision.
- Represented a national bank in temporary injunction hearing where borrower sought to enjoin foreclosure on oil and gas assets and proceeds; temporary injunction denied. Later in bankruptcy court, successfully defended the bank in defense of numerous lender liability claims asserted in a bankruptcy filed to avert foreclosure and obtained resolution during an adversary action before the court involving repayment to the bank of the subject loan.
- Defended Capital One Bank in a real estate contract dispute at trial and on appeal resulting in a take nothing judgment for the plaintiff and an award of attorney’s fees for the bank for the trial and the appeal, including costs. Capital One, N.A. v. Haddock, 394 S.W.3d 605 (Tex. App.—Dallas 2012, pet. denied); Capital One, N.A. v. Haddock, 2016 Tex. App. LEXIS 3126, 3-4 (Tex. App. Dallas Mar. 28, 2016, no pet.).
- Lead counsel in a national class action filed against a national bank alleging violations of the Fair Credit Reporting Act. Case was resolved by agreement and class settlement approved by the court.
Represented the nation’s largest savings and loan association in a lawsuit arising out of an alleged fraudulent factoring scheme. The plaintiffs alleged claims for fraud, negligent, misrepresentation, negligence, and breach of a duty of good faith and fair dealing. After a 23 day trial, the trial judge exonerated the bank and dismissed plaintiff’s claims for $3 million in damages.
- Represented a national bank involving alleged embezzlements of approximately $4 million. Plaintiffs alleged that the bank converted the checks by not verifying the signatures. We negotiated a settlement on behalf of the bank with the customers, and one of the customers agreed to pay the bank 100% of its loan, with interest, on which we had filed a counterclaim.
- Represented the purchasing bank and its holding company sued in state court by a group of bondholders alleged to hold more than $45 million in debt. Plaintiffs alleged a variety of causes of action challenging the acquisition of Washington Mutual Bank, including the role of the FDIC in the process. After removal to federal court, the case was transferred on our motion to the United States District Court in the District of Columbia.
- Represented a financial institution that was a bond indenture trustee sued by eleven purchasers of bonds. Plaintiffs sought $21 million from our client after a fraudulent scheme collapsed, resulting in the failure of several parties to repay the bonds. We successfully secured summary judgment and a plea to the jurisdiction, resulting in dismissal of all claims.
- Represented a national bank in a matter brought by one of its customers relating to alleged embezzlements totaling around $3 million. The customer sued the bank for fraud, conversion, and breach of contract relating to this embezzlement, which the customer alleged was allowed by the bank’s negligent opening of an account for the embezzler without proper corporate documents. We negotiated a settlement on behalf of our client, and obtained an indemnification from the customer in related litigation.
- Successfully defended the Chief Operating Officer of a bank holding company in an SEC investigation after the company agreed to a 10(b)(5) fraud consent decree, including a cease and desist order. In addition to in-depth knowledge of federal securities law, reliance on counsel defense and partial waiver of attorney client privilege, the trial team became intimately knowledgeable about the SEC Corporation Finance review process, the company’s credit policies, reporting policies, Sarbanes-Oxley certification process, and other policies related to preparation and vetting of the company’s periodic reports.
- Assisted financial institutions in certain “special projects” outside of litigation. As an example of one such project, we conducted a detailed analysis of Texas foreclosure issues for our client. This project was undertaken to avoid potential borrower or class litigation to overturn hundreds of foreclosures. The potential litigation was avoided.
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Our banking litigators have successfully represented financial institutions in disputes involving:
- lender liability claims
- deceptive trade practices
- claims of wrongful foreclosure and receiverships used to chill foreclosures
- limited or full guaranties
- claims arising under UCC Articles 3, 4 and 9
- trust and fiduciary issues
- alleged forgeries
- fictitious payees
- RICO claims
- bank operations
- securing real estate and other bank collateral
- federal regulatory and consumer statutes
- good faith claims
- claims of wrongful repossession
- predatory lending
- patent infringement