Breaking News

Highland Financial Partners Files Lawsuit Against Orrick Herrington & Sutcliffe LLP
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

A lawsuit was filed on Wednesday in the state of Texas by Highland Financial Partners LP that alleges that its former counsel, Orrick Herrington & Sutcliffe LLP, cost the firm $95 million because it failed to tell them about a provision in a collateralized debt obligation transaction that allowed Royal Bank of Scotland Group PLC to cancel it whenever it wanted to do so.

Orrick is accused of costing the investment firm and its affiliates, Highland CDO Opportunity Master Fund LP and HFP CDO Construction Corp., close to $100 million in damages after Orrick failed to tell the company that its CDO with RBS could be canceled by RBS at any time without explanation.

  
What
Where


Orrick is alleged to have committed legal malpractice when advising Highland in the CDO transaction that took place in 2007 and in 2008. During this time period, the firm reviewed two amendments that were supposed to extend the deadline time to finish the transaction and close it.

According to the lawsuit, Orrick knew that Highland paid RBS over $65 million for extensions but Orrick did not tell the firm that the amendments did not cancel a provision from the original agreements that allowed the bank to cancel the agreement whenever it pleased. The suit then says that the firm paid tens of millions of dollars for ‘meaningless extensions.’

The lawsuit then claims that RBS prematurely ended the agreement in October of 2008 because of Orrick’s negligence and the fact that RBS wanted to take advantage of international accounting standards that would allow RBS to report a profit of $30 million when it foreclosed on the assets in November of 2008.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




According to the lawsuit, Highland lost $65 million that it had to pay to RBS and also faces approximately $30 million in deficiency.

“It was well understood that Highland paid more than $65 million in exchange for an extension of the transaction that would allow the parties sufficient time to close the deal,” the suit said. “Yet, despite Highland’s express directives, Orrick’s extensive experience with Highland, and Orrick’s industry-leading knowledge of these transactions, Orrick negligently failed to advise Highland that the amendments permitted RBS to unilaterally terminate the deal at any time.”



In each of Highland’s CDO transactions dating back to the middle of the 1990s, Orrick has represented Highland from its London and Los Angeles offices. During that period, 25 CDO transactions took place in the United States and four CDO transactions took place in Europe from 1996 to 2008. William T. Reid IV, Lisa S. Tsai, Joshua J. Bruckerhoff and Craig A. Boneau from Reid Collins & Tsai LLP represent Highland in the case. The counsel for Orrick has not been announced yet. The case is titled as Highland CDO Opportunity Master Fund LP et al v. Orrick Herrington & Sutcliffe LLP et al. The lawsuit was filed in the District Court of Dallas County, Texas, the 68th Judicial District.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Commercial Litigation Attorney with 4+ years of experience

USA-IL-Chicago

Chicago office of our client seeks commercial litigation attorney with 4+ years of experience. The c...

Apply Now

RELEVANT JOBS

Litigation Associate (Junior to Mid-Level) - Medical Malpractice - Garden City, NY

USA-NY-Garden City

Defense firm seeking junior to mid-level associate for Garden City office to fill Medical Malpractic...

Apply now

CIVIL LITIGATION ATTORNEY - Employment

USA-CA-Fresno

Lang, Richert & Patch a Fresno area AV-rated law firm located in the highly desirable Fig Garden Fin...

Apply now

ASSOCIATE ATTORNEY

USA-TX-Houston

INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

Summary: The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Ho...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top