Maslon achieved full recovery on a troubled loan for a southeastern regional bank and its asset-based lending subsidiary following two years of litigation.

The guarantor, a publicly traded corporation, mounted an aggressive defense when our client ultimately filed suit in Hennepin County District Court to recover on its loan. As lead counsel for the creditor, a Maslon team led by Amy Swedberg successfully demonstrated that the bank had acted in a commercially reasonable manner in realizing upon its collateral before suing the guarantor for a deficiency. Notably, we convinced the court to require the guarantor to put up a significant bond, establishing a high floor that proved enormously advantageous to our client in settlement discussions.

On the eve of a jury trial with an expert ready to testify on the standards for commercial reasonableness under the Uniform Commercial Code (UCC), the case settled for well over half the damages sought. The result was the client’s full recovery of the amount charged off on the loan plus enough to fully reimburse it for attorneys’ and expert witness fees in the litigation.

Amy Swedberg was assisted in this matter by Peter Hennigan, Gemma Jo, and Renee Rice.

The parties reached a settlement agreement in November 2025; the court dismissed the case on March 3, 2026.