Insurance
Nov. 25, 2014
Lender liability to guarantors: doctrine, pitfalls and strategy
When banks think about lender liability, they typically envision lawsuits by borrowers. But guarantors can also sue. By Caleb Mason
When banks think about lender liability, they typically envision lawsuits by borrowers. But guarantors can also sue. And the combination of an old doctrine, a new case and modern banking practices can create unexpected causes of action. Lenders must be aware of the possible bases for suits by guarantors, and adjust their disclosure practices and their litigation strategies.
Old Doctrine: Sumitomo
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