Michael R. Farrell

Published Decisions

• CADC/RADC Venture 2011-1, LLC v. Bradley, 235 Cal.App.4th 775 (2015). In lender’s action for breach of guaranty, the guaranty is not deemed to be an unenforceable “sham” guaranty under anti-deficiency laws because there was adequate legal separation between the borrower and the guarantor, and there was no evidence the lender structured the transaction to subvert anti-deficiency protections.
• Ram v. OneWest Bank, FSB, 234 Cal.App.4th 1 (2015). In foreclosure avoidance action, foreclosure sale was valid where the notice of default was signed by an entity that had not yet been substituted as trustee because the entity was an agent of the beneficiary, and because borrowers failed to allege they had tendered amounts owed and were prejudiced by procedural irregularities.

Real Estate Litigation

• Lender. Numerous breach of contract actions against mortgage brokers for damages arising out of the sale of mortgage loans.
• Lender. Defending hundreds of foreclosure-related actions in California and throughout the United States, including supervision of local counsel in various states, in both state and federal courts.
• Owner. Represented owner of iconic retail development against general contractor and numerous subcontractors in disputes over construction defects.
• Lender. Action against borrower to recover collateral on a $29 million loan, including imposition of an equitable lien on real property and appointment of a receiver.
• Investor. Pursuit of claims for misrepresentation arising out of purchase and construction of $10 million home in Manhattan Beach, CA.
• Lender. Action for quiet title and injunctive relief relating to foreclosure of commercial property.
• Lender. Foreclosure and recovery of multiple properties occupied by residential treatment facilities.

Commercial Litigation

• Owner. Defended car dealership entity and principal against claims by interest holder relating to buyout of interest after termination. 
• Investor. Defended shareholder at the trial of a multimillion-dollar securities fraud claim arising out of the sale of an entity. 
• Corporations. CERCLA litigation relating to soil and groundwater contamination in San Bernardino County, California. 
• Corporation. Defended against claims by construction manager of national origin discrimination. 
• Corporation/Officers.Defended against claims of trade secret misappropriation relating to formation of competing business. 
• International Hotel Owner. Claims against operator for failure to comply with franchise agreement.

Receivership Actions

• Lender. Actions to appoint receiver over several residential developments, including management of receivership and defense of borrower actions. 
• Receiver. SEC securities fraud action involving $1.7 billion Ponzi-like scheme in Orange County, California. 
• Lender. Action to appoint receiver relating to low-income housing development in Santa Barbara County, California.