Banking Litigation

ZEK regularly represents both domestic and foreign banks and other financial institutions in a wide variety of litigation involving the institutions themselves, their officers, directors, shareholders and those doing business with them. Many of these disputes implicate issues involving the Uniform Commercial Code, a statute in which we take pride in our expertise, as well as other statutory and common law. We have special expertise representing banks in lender liability situations and actions involving statutory regimes including the Truth in Lending and Truth in Savings Acts. Because of the breadth of our exposure in such matters we are often called upon to give pre-litigation advice to our clients; indeed, our expertise in litigation avoidance frequently results in the favorable resolution of disputes for our clients without the expenses of lawsuits.

The Firm has represented numerous United States and foreign banks in the prosecution and defense of cases in the areas of lender liability; trust indentures; securities and negotiable instruments; letters of credit; electronic funds transfer; open or closed end credit (including credit card matters); collections; loan documentation; and factoring. The Firm has experience in advising clients on responding to grand jury and legislative subpoenas, administrative investigations and other legal process.

For example, the Firm successfully defended one of our banking clients in connection with claims that the bank had acted improperly in its handling of a $15 million wire transfer which had allegedly been fraudulently diverted.

ZEK also represented a major United States bank and effected a favorable settlement in connection with claims in excess of $14 million in connection with proper compensation for the sale of its global trust business to another prominent United States banking institution. Banks have routinely retained ZEK to defend them in the context of class action litigation; one such class action lawsuit arising out of allegations that the bank had failed to properly adjust interest rates for certain adjustable rate mortgages was settled on favorable terms to the bank. Another major bank tapped ZEK to defend it in a case in which claims of racial discrimination in lending were asserted; the Firm's vigorous defense in this action led to a favorable resolution of the action before trial. ZEK's special banking law proficiency sometimes prompts banks to retain the Firm as special appellate counsel. For example, in a recent case involving consequential damages associated with an errant wire transfer, one bank replaced its trial counsel with ZEK, following an unfavorable trial verdict; in that instance, ZEK was able to achieve a reversal at the appellate level, a ruling that was upheld by the New York Court of Appeals.

back to top