Jonathan Hayden Quoted in Massachusetts Lawyers Weekly
Rackemann attorney Jonathan Hayden was quoted in Massachusetts Lawyers Weekly regarding a story on U.S. District Court Judge Nathaniel Gorton’s recent denial of defendant Quantum’s motion for summary judgment in Traut v. Quantum Servicing. The plaintiff in the case claims they were foreclosed upon in violation of a forbearance agreement. Specifically, the plaintiff homeowners alleged that the defendant loan servicer violated the terms of the forbearance agreement as set forth in the cover letter to the plaintiff.
From Loan Servicer Can Be Sued for Breaching Forbearance Contract:
“Boston attorney Jonathan C. Hayden, who represents commercial mortgage lenders, said the ruling is a cautionary tale for both lenders and those who represent them. ‘You have to be very careful when you’re sending correspondence or making any statements to borrowers or their counsel,” Hayden said. “This decision shows that an integration clause is not always going to save you.’ Hayden called the case a textbook ruling on the application of the parol evidence rule. ‘In the end, the minute that cover letter was sent, I think this judge’s outlook was that [Quantum] was not going to be able to simply rely on this integration clause,’ he said. ‘Since the letter was sent to a private individual as opposed to a company, it was going to be really hard to convince the judge to accept an extremely strict adherence to the parol evidence rule.’ Hayden speculated that the language of the cover letter also persuaded the judge not to accept Quantum’s argument that the plaintiffs’ late payments were unquestionably material breaches of the forbearance agreement.”
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