Prepayment Penalty Summary Judgment

The Firm handled a case for a client which was filed in federal district court in Milwaukee. The borrower filed a declaratory action challenging the client's interpretation of a key provision in the loan documents which required payment of a prepayment premium if the borrower wanted to pay off its loan before maturity in order to take advantage of lower interest rates by refinancing the loan. This was a closely watched case because an adverse decision would have encouraged other borrowers to try to avoid their prepayment premium obligations. Earlier this week, the chief judge of the Milwaukee district court granted summary judgment in our favor in a 12-page decision which adopted all of our arguments, plus the court ordered the borrower to pay AEGON's attorneys' fees. Steve Hartmann and Aren Fairchild worked together on this case as well.