$7M Verdict / $100K Attorney Fees Award
Securing favorable outcomes is a driving factor at the firm and why clients continue to put their trust in us. In our ongoing success stories series, we are proud to share yet another example of achievement.
In complex litigation against one of the biggest banks in Texas, Weitz Morgan won a favorable jury verdict eliminating $7M of debt for a large warehousing and distribution company.
The case involved fraud by a successor bank that assumed loans from a failed bank through the FDIC. Weitz Morgan sued in order to stop a foreclosure. In order to argue the client did not owe on the note, an allegation of fraud was pleaded, which is a defense to payment. The defendant countered with the D’Oench doctrine, which precludes a defense based on fraud if it was not part of the failed bank’s loan committee minutes. Therefore, the core issue in the case was the application and circumvention of the doctrine outlined in D’Oench, Duhme & Co. v. Fed. Deposit Ins. Corp., 315 U.S. 447 (1942).
Weitz Morgan convinced the court that an exception applied, arguing the fraud was not something one would expect to be in the minutes. The judge allowed this defense to be presented to the jury. The jury decided in favor of Weitz Morgan’s client and eliminated a $7M debt that was fraudulently asserted against it.
In addition to the verdict, the client received an award of $100K for its attorney fees.