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Guidance to lenders wanting legal counsel to default a borrower in litigation ASAP: Not so fast.
In a case where attorney zeal led to an appeal, an October appellate decision in California unequivocally affirmed its prior position – but seldom recognized – that prior to seeking a default judgement, legal counsel has an ethical and legal “obligation” to warn opposing counsel that it will be taking a default.
For more information see Shapell Socal Rental Properties, LLC v. Chico’s Fas, Inc., No. G060411, 2022 Cal. App. 854 (Ct. App. Oct. 17, 2022), embedded below:
