FOR IMMEDIATE RELEASE
July 26, 2019
Contact:Eric W. Boyer, Esq.
305.670.1101 Ext. 1023
QPWB RECEIVES FULL DISMISSAL OF COMPLAINT AGAINST LENDER
Default / Loan Modification Negotiations
QUEENS COUNTY, New York ― Quintairos, Prieto, Wood & Boer, P.A., New York office trial lawyer Asher A. Klein received a dismissal of all claims against his client lender, LOMTO Federal Credit Union (“LOMTO”), now known as National Credit Union Administration, and an Order denying Borrower’s Order to Show Cause with Temporary Restraints seeking to force LOMTO to renegotiate the terms of Borrower’s loan and cancel a taxi medallion foreclosure sale. Borrower-Plaintiff had filed an affirmative complaint against our client, a federal credit union, raising several common law and statutory issues under New York’s General Business Law (GBL) and the federal Truth in Lending Act (TILA).
By way of background, Borrower had entered a business loan security agreement (“Note”) in excess of half a million dollars with the lender LOMTO in order to purchase a New York City Yellow Taxicab Medallion for commercial, business use. Approximately two years later, on October 15, 2018, Borrower defaulted by failing to make monthly payments under the agreement. LOMTO attempted to work with Borrower on a loan modification. LOMTO never refused to work with Borrower in reviewing him for a potential loan modification, as alleged by Borrower.
LOMTO argued Plaintiff’s claims should be dismissed as Plaintiff had not stated a viable claim alleging breach of contract, negligence or statutory violation(s) under GBL Section 349 and TILA. LOMTO argued the OTSC should be denied as LOMTO was merely exercising its contractual rights under the commercial loan and security agreement that Borrower-Plaintiff entered. The Note contained unequivocal and unconditional promises by Plaintiff to pay Defendant LOMTO. Under Article 9 of the Uniform Commercial Code (UCC), the secured creditor may repossess the collateral without judicial intervention, though LOMTO had not even attempted to repossess or seize the collateral prior to Plaintiff’s pre-emptive action being filed.
Judge Ernest F. Hart, New York Supreme Court, Queens County granted Defendant LOMTO’s Cross-Motion to Dismiss the Complaint in its entirety and denied Borrower’s OTSC with Temporary Restraints seeking to renegotiate the terms of the loan and cancel the medallion foreclosure sale.
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Asher A. Klein, an attorney in the New York and New Jersey offices, is a member of the firm’s Business, Financial Services & Real Estate Division. His practice is focused on representing mortgage lenders and servicers in foreclosure litigation and defensive matters. He advises clients on financial and litigation risk. Mr. Klein received his law degree in 2008 from Fordham University School of Law. He is licensed to practice law in New York and New Jersey.
Quintairos, Prieto, Wood & Boyer, P.A., is the largest minority and women owned law firm in the nation with more than 400 lawyers serving clients from 23 offices in the United States and abroad across a spectrum of industries in over 40 areas of practice. Our lawyers provide representation in litigation, business, real estate and governmental law.