Lender Liability

When a Hotel's Capital Stack Breaks Down

Lender liability and hotel finance litigation arise when the relationship between a hospitality asset and its capital source breaks down. Brewer represents parties on both sides of the table. Owners and borrowers assert claims against lenders for breach of loan agreements, breach of the duty of good faith and fair dealing, improper control over the business, or wrongful foreclosure. Lenders, in turn, enforce guaranties, pursue defaults, and protect collateral when a hospitality asset falters. A hotel's capital stack is intricate, and when a loan relationship fails the property itself is at risk. Brewer steps in where the stakes are exceptionally high, bringing principled, relentless advocacy to disputes that decide who controls, and ultimately who keeps, the asset.

Brewer brings full-spectrum advocacy to every dimension of these disputes. The Firm's hospitality practice spans the full life cycle of hospitality assets, from project finance to operational disputes and exit. Its lawyers pursue the complete range of remedies and tools, from damages and loan restructuring outcomes to guaranty enforcement, receivership fights, and foreclosure litigation. Brewer litigates in state and federal courts, in specialized commercial divisions, and in arbitration, matching each forum to the demands of the matter. This is unwavering, cutting-edge advocacy built to prevail when a hospitality investment and the loan behind it collide.

Brewer's model is integrated by design. Its trial lawyers are supported by an in-house consulting group of accountants, economists, and investment banking professionals - a decisive advantage in disputes that turn on valuations, waterfalls, and loan documents. Alongside them work investigative and public relations professionals who help shape both the evidentiary record and the surrounding narrative. The Firm maintains a strict litigation-only focus, concentrating every resource on the courtroom and the negotiation table rather than on origination or transactional work. That discipline concentrates the Firm's full weight on the questions that decide the outcome.

Featured Lender Dispute Victory

In Minnesota Hotel Co. v. Westinghouse Credit Corp., Brewer represented hotel owners in a dispute with their joint venture partner and lender over fiduciary duties, breach of contract, and tortious interference across a nationwide hotel portfolio. Westinghouse counterclaimed for more than $250 million based on loans made to the hotel entities - and the matter settled for less than 5 percent of the face amount of the loans claimed.

Lender disputes are one dimension of the Firm's broader Hospitality Litigation practice.