CASE RESULTS DEPEND UPON A VARIETY OF FACTORS UNIQUE TO EACH CASE. CASE RESULTS DO NOT GUARANTEE OR PREDICT A SIMILAR RESULT IN ANY FUTURE CASE.
At its heart, the lawsuit against Beal Bank challenged the effectiveness of the transfer of assets Beal had purchased from the FDIC acting as a receiver for a failed bank. Filed in October 2011, the matter alleged fraud in a multimillion dollar real estate participation financing agreement. In April 2012, legal arguments were made to the Federal District Court in St. Paul, Minnesota, regarding correct interpretation and application of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”). In June, the Court found Beal Bank was the rightful holder in the participation agreement. Following dismissal of StoneArch’s claim, Beal Bank’s claims against numerous other parties settled for a confidential amount.
Beal Bank was represented by Bowman and Brooke Partners Tom Branigan, Rick Morgan and C.J. Schoenwetter.