Our Dispute Resolution practice group represents the client who’s debtor challenged the promissory note issued to secure the repayment of a loan. The debtor argued that the creditor was abusing his rights and pursued double recovery.
The court agreed with our client’s (the creditor’s) position that the creditor has the right to use all the collateral provided by the debtor simultaneously. Therefore, the initiation of several recovery proceedings is not itself illegal and does not invalidate the promissory note as collateral.
We are most pleased that, by dismissing the claim, the court canceled the interim measures (suspension of the recovery proceedings) and ordered this part of the decision to be enforced without delay. In this way, the court prevented the debtor from abusing his procedural rights and ensured the creditor‘s right to continue the realization of the debtor’s assets.