Brown McCarroll Attorneys at Law

Financial services companies raise, lend and invest money in a complex, closely regulated business environment where disputes can arise among any of the parties to these transactions. Our attorneys are adept at helping you resolve these conflicts.

Whether a case involves commercial banking, mortgage lending, sales of securities or insurance investments, we understand both credit and collateral and how to protect your rights.

Industry Knowledge

Our banking and finance team consists of seasoned litigators and transactional attorneys who understand the specific legal needs of financial services clients. Our experience working with lenders, insurers and broker/dealers enables us to effectively depose operating management before trial, and to clearly present technical financial issues to juries. This is a major advantage when asserting our client’s rights against a borrower or defending them against class action claims aimed at securing a settlement from a “deep pockets” defendant.

Trial Strategy

Our attorneys are well-prepared to proceed to trial in order to meet client objectives; and when we do, our emphasis is on both expediency and efficiency. We are vigorous advocates at trial, and are often able to reach favorable settlements before final judgment is entered.

We have the case preparation and case management infrastructure in place to manage complex financial disputes, which often involve massive numbers of documents. When your case dictates the need for e-discovery, we work with leading e-discovery providers to take advantage of the most advanced cost-saving tools. We pride ourselves on our thorough preparation, innovative trial strategy and persuasive presentation in the courtroom. When appropriate we use the latest technology to graphically present your evidence to highlight a point or make it easier to understand. We are tough when we need to be but thoughtful about our approach.

We have experience in federal and state courts across Texas including the courts of appeal, and are familiar with many Judges and their idiosyncrasies.

Lender Liability Claims

We defend banks, commercial credit companies and other lenders in cases in which borrowers claim fraud, misrepresentation, or breach of fiduciary duty involving loans. These suits are often brought by businesses claiming their default or other problems were the result of lender interference with their operations. Their assertions can involve the federal RICO racketeering statutes and we are well-positioned to address these claims.

Lender liability claims often involve substantial sums – we work diligently and skillfully to fully assert our clients’ rights as secured lenders. The range of liability claims we handle for our banking clients is as broad as the industry itself. The disputes often involve:

• Tying Act claims
• Fraudulent transfer actions
• Check forgery and check kiting schemes
• Fraud and defalcation allegations
• Preference litigation
• Breach of contract allegations

Creditors’ Rights

Our wide-ranging bankruptcy practice gives us an especially strong focus on creditors’ rights. We represent lenders as secured creditors in bankruptcies, liquidations and foreclosures. Getting us involved in transactions from the beginning allows us to build maximum creditor protection into the loan documents. If reorganization or liquidation of a debtor becomes necessary, we pursue those actions best suited for recovering our client’s investment.

We take a flexible approach to collateral recovery, advising banks on distressed asset sales or on becoming lenders to, or securing assets from, the debtor-in-possession. However, if foreclosure or bankruptcy litigation is necessary, we strive to secure maximum collateral recovery.

We have also assisted warehouse lenders, working effectively to draft correspondence agreements, loan participation agreements and to secure the recovery of any loan proceeds collected by the loan originators.

Subprime Lending

The ongoing distress in the subprime real estate lending market has led to a wave of litigation involving lenders, investors and borrowers. We have a team of attorneys who can help you with issues ranging from investigations by government authorities to claims against fiduciaries to bankruptcy.

Our team combines litigation skills in bankruptcy and restructuring, structured finance, internal and external investigations and other associated experience in assisting businesses and individuals affected by the subprime market collapse. Issues often include:

• Government investigations
• Claims against the officers and directors of insurers
• Claims against financial institutions asserting inadequate risk disclosures
• Recovery from participants for breaches of fiduciary duties
• Defense of companies against shareholder suits

Broker / Dealer Controversies

Our attorneys are highly skilled at defending publicly-held corporations and financial institutions, broker-dealers and their officers, directors and employees against lawsuits filed under federal and state securities laws and regulations. We counsel broker-dealers facing investor lawsuits alleging breach of fiduciary duty, improper investment advice, lack of suitability, churning and other claims, including those made by former employees.

We also regularly represent broker-dealers in matters, involving restraining orders in broker raiding cases, the enforcement of covenants not to compete and non-solicitation contracts and in regulatory and disciplinary matters before state and federal regulators as well as the securities exchanges. Broker-dealers also request our assistance in cases involving allegations of underwriting misrepresentation, in wage disputes and EEOC discrimination claims.