Morrison Cohen Obtains Summary Judgment for Arbor Realty Trust, Inc.

March 11, 2016 – Morrison Cohen LLP successfully defended Arbor Realty Trust, Inc. and an affiliate (collectively “Arbor”) in a case for breach of contract brought by a junior holder of an interest in a $125 million mortgage-backed loan to the James Hotel in Chicago. Plaintiff had its interest eliminated in a workout of the loan.

The Supreme Court of New York, New York County, denied plaintiff's motion for summary judgment and granted Arbor's cross-motion for summary judgment, dismissing all of plaintiff's claims against Arbor. The Court held that Arbor did not breach its obligations under the parties' agreements, that plaintiff had properly borne the full economic impact of the loan workout, and that the conduct of which plaintiff complained was the responsibility of the loan servicer, which acted appropriately. Click here to see decision.