[WSBAPT] Lender requesting letter from Plaintiff's attorney

[Philip N. Jones]

I have not encountered this exact situation, but it is becoming more and more common for lenders and other financial institutions to request/require the borrower's attorney to express a formal opinion on topics such as this.  They want to shift the risk of the transaction to their customer's attorney.  I suggest you resist this request.  Perhaps your client should look into other lenders.
Phil Jones
Portland

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Candace Wilkerson
Sent: Thursday, July 1, 2021 7:53 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Lender requesting letter from Plaintiff's attorney

Hi all,

I represent a plaintiff in a civil case (breach of contract).  It's early in the case, and we only just served the defendants.  My client wants to take out a loan on his real property, and has asked me to write a letter to the lender per the lender's request:

"a letter of explanation explaining that the suit will not cause [the plaintiff] to pay damages and will not jeopardize the collateral that underpins the potential loan."

There is no way that I could write such a letter.  Although there probably will be no statutory basis for attorney fees in the case, and attorney fees were not mentioned in the contract, we don't even know if either of the defendants will file a counterclaim.  Even though the real property isn't the subject of the complaint, any judgment obtained by the defendants, no matter how remote, could be recorded on the plaintiff's property.

I understand why this is being requested, but find it hard to believe that any attorney would agree to write such a letter.  Has anyone been faced with such a request?

Thanks,
Candace Wilkerson


*Candace is available to respond to emails and phone calls between the hours of 7:00 a.m. and 3:00 p.m.  If you have an urgent matter outside that time period, please call our office at the number below.

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Top Ranked Law Firm for 2015 by Fortune Magazine and American Lawyer Media
Candace Wilkerson  | Senior Associate  |  Wong Fleming

10675 Willows Road NE, Suite 250  |  Redmond, WA 98052
Phone: 425.869.4040  |  Fax: 425.869.4050
cwilkerson at wongfleming.com<mailto:cwilkerson at wongfleming.com>


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