Creditor Who Breached Subordination Agreement Must Pay Damages, Judge Rules

MILWAUKEE – A federal judge in Wisconsin on Jan. 11 awarded Wells Fargo Business Credit $ 750,000 plus prejudgment interest and costs against a defendant whom the judge earlier determined breached a series of subordination agreements when he accepted repayment on a $ 750,000 loan to a collection of borrowers with a Wells Fargo line of credit (Wells Fargo Business Credit v. Donald J. Hindman, No. 10-00348, W.D. Wis.; 2012 U.S. Dist. LEXIS 3783).

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