Dallas Court of Appeals Affirms $351 Million Judgment in Favor of Highland Capital Affiliate Against Credit Suisse.
February 20, 2018 in Case Summaries
Jeff Levinger assisted the trial team at Reid Collins & Tsai in securing the affirmance of a $351 million judgment in favor of an affiliate of Highland Capital Management against Credit Suisse. The judgment consisted of $211 million in actual damages and $140 million in pre- and post-judgment interest, and was based on fraud and breach of contract claims regarding an inflated appraisal that Credit Suisse used to induce the Highland affiliate to finance the Lake Las Vegas development. Applying New York law, which the parties had chosen to govern their relationship, the Dallas court of appeals rejected Credit Suisse’s argument that certain disclaimers in the loan documents protected it from liability for the falsified appraisal. The court also rejected Credit Suisse’s contention that a jury’s award of out-of-pocket damages for fraudulent inducement foreclosed the trial court from subsequently awarding rescissory damages in a bench trial on the remaining claims. Credit Suisse AG, Cayman Islands Branch v. Claymore Holdings, LLC, 2018 WL 947902 (Tex. App. ‑‑ Dallas Feb. 20, 2018, pet. filed) (mem. op.).
Courts: Texas Intermediate Appellate Courts
Subject Matter: Business Litigation, Oil & Gas/Real Estate