On October 22, 2012, the Palm Beach County Circuit Court, Judge Lucy Chernow-Brown, granted a motion for summary judgment against an attempt by Shubh Hotels Detroit, LLC, Atul Bisaria, and Mihu Bisaria to collaterally attack a loan deficiency judgment in excess of $36,000,000 entered against them by a Michigan State Court. The Michigan judgment is in favor of United Central Bank, which is represented in Florida by Michael S. Popok and Eric P. Hockman.
Recently, federal prosecutors in Illinois filed an indictment against Atul Bisaria alleging that he engaged in a scheme to defraud two Chicago area banks and obtain money and property by means of materially false and fraudulent pretenses, representations, promises and material omissions. Mr. Bisaria allegedly persuaded Mutual Bank and Broadway Bank to loan him in excess of $9 million and $10 million each to renovate and hotels he owned in Boca Raton and Cincinnati. You can read a copy of the indictment here. Mr. Bisaria is also the former owner of a downtown Detroit hotel, which he used to secure a second loan from Mutual Bank. A default on this loan led to the deficiency judgment against him, his wife and Shubh Hotels Detroit, LLC in Michigan.
Relying upon their misinterpretation of Florida law, and ignoring the U.S. Constitution’s requirement that courts of sister States give “full faith and credit” to the judgments of other States, Shubh Hotels Detroit, LLC, Atul Bisaria, and Mihu Bisaria sought to reopen and relitigate virtually every issue previously determined by the Michigan court, including the appointment of a Michigan receiver.
Under both U.S and Florida law, judgments entered by sister state courts are entitled to full recognition and enforcement in all other courts of the United States, provided that the judgment debtor has had notice and an opportunity to be heard. Shubh Hotels Detroit, LLC, Atul Bisaria, and Mihu Bisaria all appeared and defended against the Michigan action over several years. Despite their allegations of improper decisions by the Michigan court, the deficiency judgment was never challenged properly in Michigan and is valid and enforceable in Florida accordingly. By her order, Judge Chernow Brown halted the effort by Shubh Hotels Detroit, LLC, Atul Bisaria, and Mihu Bisaria to turn Florida’s courts into a court of appeals for Michigan and ended the collateral attack on the $36,000,000 deficiency judgment against them.
WSH’s Litigation Division routinely represents private businesses and individuals in the prosecution and defense of a wide variety of general commercial and business dispute litigation in both individual and class action settings. Our attorneys have experience with Fraud and RICO litigation, securities litigation and fraudulent transfer litigation. Our representation of our clients does not end at the judgment stage; the attorneys in our Bankruptcy and Creditors’ Rights Group are skilled in enforcing and collecting domestic and foreign money judgments. The Group has directed collection efforts throughout the world, including Central and South America.
Author(s): Eric P. Hockman
