Lender Claims: Back To The Future?

The present recession and property downturn sees the return of 1990s' conditions for lender claims.  Those of us who were in the front line for the professionals have the benefit of the lessons we then learned, but equally face new challenges in dealing with the anticipated new onslaught.

What Have We Learned From Last Time?

First, we inherit the legacy of the 1990s' case law, in which lenders won early battles but the professionals fought back. The law is clearer than it was at the start of the last wave of claims. Lenders cannot, for example, expect to recoup 100 per cent of their losses simply by alleging a breach of trust or other fiduciary duty. Following SAAMCo, nor can they expect professionals to make good the entirety of the losses caused by falls in the property market.