LEHMAN BROS. HOLDINGS v. BETHANY HOLDINGS GROUP

No. 10 Civ. 4373 (SHS).

801 F.Supp.2d 224 (2011)

LEHMAN BROTHERS HOLDINGS INC., as Debtor and Debtor-In-Possession in Its Chapter 11 Case in the United States Bankruptcy Court for the Southern District of New York, Case No. 08-1355(JMP), Plaintiff, v. BETHANY HOLDINGS GROUP, LLC, the Terry and Rose Knutson 2000 Family Trust, and Terry Knutson, Defendants.

United States District Court, S.D. New York.

August 5, 2011.


Attorney(s) appearing for the Case

David Paul Staubitz , Joseph Francis Donley , Dechert, LLP, New York, NY, Katherine A. Burroughs , Dechert LLP, Hartford, CT, for Plaintiff.

Kyle C. Bisceglie , Howard J. Smith, III , Olshan, Grundman, Frome, Rosenzweig & Wolosky, LLP, New York, NY, Elliot S. Blut , Gary K. Salomons , Ecoff, Blut & Salomons LLP, Beverly Hills, CA, Lawrence C. Ecoff , Zimmerman, Rosenfeld, Gersh & Leeds, LLP, Beverly Hills, CA, for Defendants.


OPINION & ORDER

SIDNEY H. STEIN, District Judge.

Plaintiff Lehman Brothers Holdings, Inc., loaned defendant Bethany Holdings Group, LLC, more than $200 million for the purchase of apartment properties in Arizona. Defendants The Terry and Rose Knutson 2000 Family Trust and Terry Knutson (collectively, the "Knutson defendants") executed five guaranties in connection with Lehman's loans to Bethany. After Bethany defaulted on the loans, Lehman demanded...

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