Law360 recently reported on a new suit filed by Ross LLP partners Peter W. Ross and Richard A. Schwartz on behalf of its client, 360 N. Rodeo Dr., LP, the former owner of the elite Luxe Rodeo Drive Hotel. The lawsuit alleges that 360 N. Rodeo Dr., LP was forced to shut down the upscale Luxe Rodeo Drive Hotel after lender Wells Fargo Bank N.A. and Midland Loan Services, the commercial mortgage servicing division of PNC Bank N.A., backed out of earlier representations that temporarily closing the hotel would not constitute a default under the loan agreement between the parties. 360 N. Rodeo Dr., LP seeks in excess of $25 million in damages stemming from the lender and servicer's alleged misrepresentations.
According to Law360's coverage:
Peter Ross of Ross LLP, a lawyer for the hotel owner, said in a statement Monday that 360 N. Rodeo Drive LP "did everything right" to stay whole as a borrower even though the hotel's bookings were decimated by coronavirus-related "stay at home" government orders. "Only essential workers could be out. To conserve cash, the hotel closed its doors but still covered all of its regular debt service," Ross said. "For a year and a half, Wells Fargo and Midland sent monthly statements confirming that no default interest was owed. They then reversed course and insisted on collecting millions in default interest and special fees — all for shutting down during the pandemic. It's not right. It's not fair."
The filed complaint is available here:
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