On March 30, 2012, LBHI filed a complaint against the appraiser for negligence and negligent misrepresentation in connection with the valuation of the property.
The appraiser argued the complaint was barred by Florida's four-year statute of limitations, which the appraiser claimed began to run in December 2007 when LBHI repurchased the first mortgage, because LBHI would have been aware of the alleged misrepresentation on that date.
The court of appeals upheld the district court's finding that LBHI knew or should have known by December 2007 that the appraisal for the first mortgage misrepresented the value of the property.
The court of appeals declined to apply the law from other jurisdictions as LBHI advocated and create a separate rule for negligence in real property appraisals.
Comparison with historical experience indicates that the recovery rate for LBHI's senior unsecured creditors has been below average so far, even after accounting for possible mitigating factors (for example, the state of the economy and the credit cycle).
brokerage subsidiary of LBHI and subsequently of Barclays Plc, to finance positions through the Federal Reserve's (Fed) liquidity facilities.
Retail OTC derivatives counterparties of Lehman terminated their contracts within weeks of LBHI's bankruptcy filing under the safe harbor provisions, but final settlement of their claims remains incomplete.
The three or four days prior to LBHI's bankruptcy filing were filled with confusion and indecision.
LBHI and its bankruptcy counsel initially filed few of the typical first-day motions that seek the bankruptcy court's authorization to carry on the many facets of "business as usual" that otherwise would be prohibited by various Bankruptcy Code provisions (for example, maintain accounts and current cash management systems, affirm clearinghouse contracts, and so on; see Azarchs and Sprinzen ).
PI Two and Metrobank told the RTC that they had discovered that before Lehman Brothers declared bankruptcy, Standard Chartered had received some $90 million in bonds as collateral from LBHI
, and was negotiating a settlement in New York for the same loan that it was already being paid for under PI Two's local rehabilitation plan.
'In freezing LBHI
's assets, JPMC was purportedly holding all of LBHI
's assets as a potential offset against any claims JPMC may have had against LBHI
,' it said, adding 'as a result of JPMC's actions, LBHI
suffered an immediate liquidity crisis, that could have been averted by any number of events, none of which transpired.'
Untalan's order resolved motions filed by PI Two and another creditor, the Metropolitan Bank and Trust Co., stating that SCB's parent company and LBHI
already had a global settlement in New York, which included SCB's exposure in PI Two.