NJ Commercial Debt Forgiveness

Mr. Malc represented a client who received two commercial loans totaling $930,000.00.  The loans were insured by the Small Business Administration (“SBA”).  When the client’s up-and-coming business fell victim to extraordinary challenges, the business shuttered, and the loans could not be repaid.  Mr. Malc’s client did all it could to mitigate damages to the Bank, including selling assets to repay a portion of the debt. Despite those efforts, the Bank filed a foreclosure complaint to foreclose the mortgages that secured the two loans, and also filed a separate complaint to collect the unpaid balance of the loans.

Mr. Malc challenged both lawsuits in court and was able to hold them in abeyance while settlement discussions ensued.  Mr. Malc spent approximately two years negotiating with the lending bank, the SBA, and the United States Treasury.  With accrued interest, the bank was seeking to collect nearly $1.2 million dollars from Mr. Malc’s client.

In the end, using multiple litigation and settlement strategies, Mr. Malc was able to get the bank and the SBA to forgive the debt, release the personal guarantors, and discharge the mortgages.  With the mortgages discharged, Mr. Malc’s client was able to sell his home for a sizable profit and get out from under crippling debt.

If you are facing foreclosure or a collection lawsuit, whether it is related to residential, commercial or SBA-backed debt, Ryan S. Malc, Esq. has the knowledge and experience to guide you through that process and to assist you in achieving the best possible results.

Contact Ryan Malc at 732-363-0666 Ext 254, or send him an email at rmalc@bathweg.com.

Recent Mediation Case

COVID-19 has slowed down the adjudication of cases and the active Mediation of the more substantial ones. Now that the court system is in the process of moving cases again, it is more important than ever that you move your case to Mediation immediately and that we all get back to pre-COVID mediation levels.

On November 12, 2021, Judge O’Brien, a retired Presiding Civil Judge from Ocean County settled an Ocean County Dram Shop case for $325,000.00. Plaintiff was driving the second car in a three car accident. Plaintiff’s vehicle was rear-ended and pushed into the vehicle ahead of his. The Defendant drunken driver had a $15,000.00 policy that was offered immediately. He also had one prior DUI. Defendant’s BAC was .22 at the time of the crash which occurred one mile from the bar where the Defendant had been drinking. Plaintiff’s claim was that the Defendant was “visibly intoxicated” at the time he was served at the Defendant’s bar. The 30-year old Plaintiff with no pre-existing conditions suffered herniated discs at C2-3, 4-5, 5-6, 6-7 and T2-3 as well as herniated discs at L3-4, 4-5 and L5,S-1. His treatment consisted of epidurals, trigger points, branch blocks and radio frequency ablation. He also had arthroscopic surgery on his left knee. His treating doctors projected possible anterior cervical fusion/discectomy and a knee replacement. Plaintiff was self-employed and has no lost wages.

Judge O’Brien will conduct mediations either live or by Zoom

How Is COVID-19 Impacting The Legal System?

The effects of COVID-19 on our way of life are felt everywhere.  No matter what you do for a living, your work has undoubtedly been affected by Covid.  The legal field is no different.  If you are involved in a lawsuit, you know full well that Covid has made a slow process significantly slower—especially if your matter is bogged down in the court system, where access to the courtroom is extremely limited.

Since COVID reared its ugly head, I have been advising my clients to consider alternate methods of resolving their legal disputes.  Clients who have taken that advice are happy they did.  Those alternate methods include mediation and arbitration.  While courts are dealing with unprecedented backlogs of cases, lawsuits are lingering, legal fees are rising, and disputes that in normal times would have already been scheduled for trial, are left unresolved. For those reasons, litigants who are willing to explore mediation or arbitration are resolving their disputes much faster and more cost effectively than those who are less flexible.

What Is the Difference Between Mediation & Arbitration?

Mediation is a process where the mutual consent of the parties is necessary to resolve a dispute.  Essentially, mediation is similar to a settlement conference where a hired mediator acts as an intermediary to assist the parties in reaching a resolution.  While the process itself is voluntary, any agreement reached at a mediation will be binding on all parties.  It is the most cost-effective method of resolving a dispute.

Arbitration is much different than mediation.  Parties can voluntarily submit their matter to arbitration, or, depending on the nature of the parties’ relationship, they can be contractually obligated to resolve their dispute through arbitration.  Arbitration is similar to a trial but is held outside of the courthouse and is presided by an arbitrator, who is typically hired by the parties.  At the arbitration hearing, the parties present testimony and documentary evidence, just as they would in a trial.  At the conclusion of the hearing, the arbitrator issues a decision, which is binding on the parties and, except for very rare circumstances, is not subject to reversal by appeal.

Whichever alternative dispute resolution process works for you, our firm has been resolving disputes between parties outside of court for decades. Ocean and Monmouth County residents looking to expedite the legal process and have their issues resolved in a cost-efficient manner can contact Ryan S. Malc, Esq. of Bathgate Wegener & Wolf.