Luce Forward today announced it has expedited the formation of a specialized team of attorneys to serve as the firm’s National Foreclosure Litigation & Investigation practice.
Luce Forward’s objective in assembling these leading practitioners and specialists is to provide ‘one-stop shopping’ to institutions facing potential civil or criminal liability arising out of the national foreclosure crisis. The new practice will serve lenders, servicers and institutional investors facing civil litigation, proposed class actions, and federal and state investigations.
The National Foreclosure Litigation & Investigation practice will proactively work with clients to limit or eliminate potential civil or criminal liability prior to the commencement of civil litigation or a civil or criminal investigation. The team will also investigate and evaluate a client’s potential civil and criminal liability exposure arising out of the foreclosure crisis and then provide practical recommendations to the client to reduce exposure.
“This emerging national foreclosure crisis embodies a ‘perfect storm’ of events that could lead to substantial liability for companies and institutions that fail to aggressively investigate their potential exposure,” said Kurt L. Kicklighter, Luce Forward’s Managing Partner. “We represent numerous institutional clients that will benefit from the comprehensive defense approach that Luce Forward has now assembled. I am pleased the size of our firm provides us the opportunity to put together a ‘dream team’ of attorneys with the necessary expertise to defend against any litigation arising out of this unprecedented crisis.”
Led by Partners Pat Swan, Chris Healey and Steve Wall, the National Foreclosure Litigation & Investigation practice consists of nearly 20 civil and criminal specialists who are experienced in defending corporations facing civil and criminal investigations; defending corporations named as defendants in class actions; conducting internal investigations on behalf of audit committees or management; and creating compliance programs following deferred prosecution agreements.
Swan, Healey and Wall are three of the leading practitioners in the respective fields of corporate criminal defense, class action litigation, and California foreclosure law. Just this year, Healey represented plaintiffs in the class action suit against Skilled Healthcare Group which resulted in a $677 million verdict – the nation’s largest verdict this year. The firm also has a demonstrated track record of success at trial in foreclosure related litigation and class actions. In 2007, Wall led a team in successfully preventing a foreclosed-out property owner from expanding his case into a statewide class action that would have involved hundreds of foreclosure trustees. In 2008, Wall and the foreclosure team convinced the trial judge that a property owner had no basis for a class action against a title company acting as trustee in a foreclosure. The plaintiff also attempted to assert claims under California’s unfair competition laws. The case was dismissed and the dismissal affirmed by the Court of Appeal.
“Combining the substantive expertise of the firm’s foreclosure specialists with the experienced class action attorneys that work in our business litigation group provides our clients with a powerful tool to employ against any future class actions or Unfair Competition Law claims related to the national foreclosure crisis,” said Wall.
Luce Forward formed its National Foreclosure Litigation & Investigation practice as some national lenders have announced temporary moratoria on foreclosures in selected states while others have stopped all of their foreclosure proceedings nationwide. At the same time, federal and state agencies are launching civil and criminal investigations into various foreclosure practices. In response, numerous lenders, servicers, and institutional investors are contemplating the need to conduct internal investigations to determine the scope of their potential civil and criminal liability.
A corporation or business entity must consider the benefits and risks of a potential deferred prosecution agreement against the impact such an agreement would have in related civil litigation. Internal investigations – with or without a prior agreement to cooperate with government agencies – must be conducted with an understanding of how the investigation will impact the related civil litigation or future class actions.
Pat Swan, head of Luce Forward’s white collar defense group, said it is crucial for general counsel to have the advice of experienced outside counsel prior to making any decision about whether to cooperate with government investigators.
With multiple offices throughout California, Luce Forward has attorneys in San Francisco, Los Angeles, Orange County, and San Diego. Depending on the client’s needs, Luce Forward can present and implement a comprehensive and multi-tiered defense strategy that recognizes and addresses the unique challenges corporations face when responding to simultaneous government investigations and related civil actions.
