Ayala Defeats Motion to Dismiss in Case Alleging Bait-and-Switch Scheme Against Commercial Lender

Ayala is proud to announce that it has defeated the defendant’s motion to dismiss its client’s case against a commercial lender who, in the last hours before closing, changed the terms of the loan originally offered.

The case involved commercial loans for two investment properties. The lender had offered Ayala’s client 90% of the property value funding and a 6.99% rate. At the last minute, the lender changed the rate to 8.99% and required a 15% deposit from its client. This last-minute change put Ayala’s client in a position to lose their escrow deposits of $180,000 or agree to a loan with bad terms.

The complaint alleges cause of action for breach of contract, fraudulent misrepresentation, violations of the Florida Unfair and Deceptive Practices Act, and violations of Florida statutes section 494.001, which regulates lenders in Florida.

As stated by attorney Eduardo A. Maura who argued the motion, “We are happy with this result. The judge largely upheld the complaint and now moves forward to trial. We fully intend to prove the illegality of the bait-and-switch scheme, and how it damaged our client’s business.”

For more information on real estate actions, contact one of our real estate attorneys at 305-570-2208. You can also email our attorney Eduardo A. Maura directly at eduardo@ayalalawpa.com.

We at Ayala Law PA are passionate about helping those in legal need, so please don’t hesitate to schedule a case evaluation with us online here.

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].