Special-Servicer Work Heats Up, Revealing CMBS Tensions

Restructuring, insolvency, and creditors rights partner Gary Kaplan provided expert commentary in the Law360 Real Estate Authority article "Special-Servicer Work Heats Up, Revealing CMBS Tensions."

In the article, Gary noted that there is usually language in documents that greatly limits the claims investors can bring against special servicers. In order to bring a claim, he explained, the investor would have to find the special servicer did something "pretty egregious."

"Normally, you narrow parties that have the rights to pursue claims, and there is language that limits the sort of claims," said Gary. "So special servicers can only be sued for intentional misconduct and gross negligence, not just that they should have made some deal, and they did another one instead."