UBS Win for Secured Lending Industry Earns Litigators of the Week Recognition

2 minute read | April.12.2024

  • American Lawyer today recognized a financial services litigation team led by partners Darrell Cafasso and Rich Jacobsen in the Litigators of the Week feature for a recent $100+ million win for UBS Asset Management.
  • A bankruptcy judge in Texas last week found entirely for UBS in a lengthy litigation battle against energy tycoon Charif Souki over his defaulted loans. We represented UBS Asset Management and certain funds they advised, which were owed more than $100 million under various loan agreements with Souki. We prevailed in the litigation in both bankruptcy court and New York state court.
  • The bankruptcy court, after hearing the evidence at trial in December, issued a decision rejecting Souki’s claims and importantly found our client “acted in good faith and were commercially reasonable” in all of their actions, which were undertaken in an effort to reach a consensual resolution of the matter. The judge not only wiped out Souki’s claims but ordered him to pay $100 million in damages.
  • The decision establishes important precedent for the secured lending market, preserving best practices that protect both borrowers and lenders.

The Wall Street Journal, Financial Times, Bloomberg, American Lawyer and Law360  reported on the significance of the win.

In addition to Darrell and Rich, the team includes partners David Litterine-Kaufman and Nicholas Poli, and associate Harry Murphy.