Major bank client settles suit for breach of guaranties and fraudulent transfer
Clients Financial institution
Jones Day represented a major bank client in litigation against the guarantors of a large, California-based real estate development enterprise. Upon learning of the guarantors' dissipation of assets to non-guarantor affiliates, the bank asserted fraudulent transfer claims against the guarantors and their affiliates, and obtained a preliminary injunction freezing the assets transferred. Jones Day also aggressively litigated and obtained contested attachments orders, discovery sanctions, and an order to show cause re contempt. After nearly two years of litigation -- and less than a week before trial was scheduled to begin -- Jones Day settled the dispute on mutually agreeable terms.