Litigation

Pryor Cashman obtained a significant victory on behalf of client BOL Opportunity Fund I, LLC (“BOL”), before the Supreme Court, New York County, Commercial Division.

BOL, a well-known and successful credit fund that provides financing to third parties, first sought a declaratory judgment that its interest in all assets of non-parties Inova Technology, Inc. and Desert Communications, Inc. are senior to those of defendants Ascendiant Capital Group, LLC and Ascendiant Opportunity Fund-I, LLC. BOL subsequently moved for partial summary judgment before discovery, arguing that its claim was supported by the unambiguous underlying transaction documents and undisputed facts. The defendants cross-moved, arguing that they are the senior lenders to Inova and Desert.

The Court granted BOL’s motion in full, and denied the defendants’ cross-motion. In particular, the Court held that BOL is the senior secured lender above all others holding liens against the assets of Inova and Desert.

The Court’s ruling is a reminder that summary judgment can be achieved, even before engaging in time-consuming and costly discovery, in seniority disputes between lenders where the underlying transaction documents are unambiguous and dispositive on the issues..

BOL is represented by Pryor Cashman Partner Jonathan Shepard, a member of the firm's Litigation and Investment Management Groups, and Litigation Associate Eric Dowell.