We served as counsel to a large international financial institution in an action brought against it by the Chapter 11 Trustee (the “Trustee”) for Thornburg Mortgage in the United States Bankruptcy Court for the District of Maryland (the “Bankruptcy Court”). The Trustee’s suit alleged that during the economic crisis of 2007, Barclays breached its financing arrangement with Thornburg when it wrongfully called a default under its loan documents and then proceeded to sell the collateral provided by Thornburg in a commercially unreasonable manner. The Trustee sought damages in excess of $94 million in his Complaint.

In the initial stages of the case, we were successful in having the case removed from the Bankruptcy Court to the United States District Court for the District of Maryland and having one count of the Trustee’s Complaint dismissed. After extensive discovery and pre-trial proceedings, including successfully defending the Trustee’s dispositive motion, we were able to settle the litigation for a fraction of the amount initially sought by the Trustee.