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Recent Case Summaries

In the last five years, Mr. Kelley has been engaged as an expert witness in over 60 cases involving credit underwriting, lender bad faith, loan workouts and modifications, commercial, residential and corporate lending matters, board governance issues, banking operations and regulatory compliance.  He has testified in Jury and Bench Trials, both State and Federal, throughout the United States.   Examples of recent cases are summarized as follows:

 

Designated as Expert Witness by Major Regional Bank

California Superior Court (Sacramento)

Expert Report, Deposition and Jury Trial (August 2015)

[Action brought by Borrower alleging that Bank owed it a duty to prevent the misappropriation of corporate assets by an insider]

Testimony on behalf of Defendant Bank resulted in a favorable verdict

 

Designated as Expert Witness by Large Municipal County

U.S. Federal Court (Washington State)

Expert Report, Deposition, Trial Pending

[Action brought by County against large National Retail Bank seeking to recover loss of more than $1 Million due to criminal hacking scheme launched by overseas hackers – concerned Bank’s duty to oversea and secure electronic banking platform]

Testimony on behalf of Plaintiff County resulted in a large settlement with the Bank

 

Designated as Expert Witness -  by Borrower under HAMP Loan Modification (Single-Family)

California Superior Court (Sacramento)

Expert Report, Deposition and Jury Trial (November 2015)

[Action brought against major national bank regarding bad faith, fraud and non-disclosure of key elements of a Forbearance (UP) Program under the HAMP modification guidelines]

Testimony on behalf of Plaintiff resulted in a sizeable judgment against the bank

 

Designated as Expert Witness – Derivative Loan Swap Program

California Superior Court (Santa Ana)

Expert Report, Deposition and Jury Trial (October 2015)

[Client defended action brought by National Retail Bank seeking to recover a $700,000 Breakage Fee incurred upon the prepayment of a CRE Permanent Loan Swap – concerned Bank’s duty to disclose key terms and suitability of the Swap]

Testimony on behalf of Defendant resulted in Favorable Verdict

 

Designated as Expert Witness – by Major REIT

California Superior Court (Los Angeles)

Expert Report, Deposition and Bench Trial (April 2015)

[Action brought by Institutional Investor against Commercial Bank for bad faith in the failed Sale of a $16 Million CRE Loan and the wrongful retention of a large good faith fee]

Testimony on behalf of Plaintiff resulted in the full recovery of the Good Faith Deposit

 

Designated as Expert Witness – by National Accounting Firm

Judicial Arbitration before a 3-Judge Panel (Washington D.C./Richmond Virginia)

Expert Report, Deposition, Testimony before Judicial Panel (October 2014)

[Suit brought by National Title Company against a Big-Five Accounting Firm alleging that inaccurate 10-Q SEC Disclosures resulted in losses to the corporate lending group and the insolvency of the borrower and losses of $450 Million]

Testimony on behalf of National Accounting Firm resulted in a Favorable Decision

 

Designated as Expert Witness – by Large National Bank

California Superior Court (San Francisco, CA)

Expert Report, Deposition, Testimony (July 2015)

[Suit brought by victims of large Ponzi Scheme alleging misconduct by the Bank in overseeing the deposit accounts and loans of the principals behind Ponzi Scheme]

Testimony on behalf of Bank resulted in a favorable settlement with the Plaintiffs

 

Retained as Expert by a National Credit Reporting Agencies

Several Suits brought under FCRA in U.S. District Court (NY, PA, OH, TN, AL, CA)

Trial Prep, Expert Reports, Deposition Testimony

[Consumer suits brought against the Country’s largest provider of credit reports, alleging that the provider failed to accurately report credit or failed to take necessary remedial actions.  Concerns duty or reseller or issuer of tri-merge credit reports]

Testimony on behalf of National Credit Agency has resulted in favorable settlements

 

Designated as Expert by U.S.’s Largest Title Company

U.S. District Court (San Francisco)

Trial Prep, Expert Report, Deposition Testimony

[Suit brought by National Retail Bank against Title Company seeking to recover losses due to an improperly filed UCC-1 Financing Statement]

Testimony on behalf of Title Company resulted in a favorable settlement

 

Designated as Expert by the F.D.I.C.

U.S. District Courts (California and North Carolina)

Trial Prep, Expert Report & Testimony

[Has been retained by the FDIC in several high profile suits involving the failure of banks in California (2) and North Carolina, and suits brought by FDIC as Receiver against the Management and Directors of those banks]

Testimony and Prep Work on behalf of FDIC has resulted in major decisions and settlements

 

Designated as Expert by Major National Bank

Various cases brought in by U.S. District Court and State Superior Court

Trial Prep, Expert Report & Testimony

[various suits brought by borrowers seeking to invalidate foreclosures or establish bad faith on the part of Bank under the HAMP Loan Modification Program]

Testimony on behalf of Bank as resulted in Dismissals and Favorable Settlements

 

 Designated as Expert Witness for Defense in case involving Slander of Title
Superior Court of California (Los Angeles)
Declaration & Testimony (September 2014)
[Suit brought by converter of Downtown Los Angeles 200-unit Loft Development against Buyer for damages stemming from Lis Pendens filed against property – concerns financing availability and whether lack of sales was due to Lis Pendens or general decline in the real estate market]

Testimony on behalf Defendant resulted in a favorable settlement

 

 Designated as Expert Witness by National Retail Bank

Superior Court of California (Los Angeles)

Declaration, Deposition and Court Testimony (April 2013)

[Suit brought by Bank against Developer of a large Regional Shopping Center in Phoenix Arizona seeking to enforce large Personal Guaranty.  Borrower defended claiming a violation of One-Action Rule and use of a Sham-Borrowing Entity]

Testimony on behalf of Bank resulted in a Favorable Decision

 

Designated as Expert by National Commercial Real Estate Investor

U.S. Federal Courts in Oklahoma and California (Santa Barbara)

Expert Report and Testimony (February 2015)

[Suit brought by Lender against Property Owner alleging that it was owed proceeds from insurance company stemming from serious physical damage to a Shopping Center – issue was whether Owner had right to use casualty insurance proceeds to remediate property or was required to turn proceeds over the Lender]

Testimony on behalf of Property Owner resulted in favorable settlement with Lender