Joseph Lubertazzi, Jr. | McCarter & English, LLP

Clients turn to Joe to protect their interests in distressed debt, real property, and other assets quickly and efficiently through litigation and out-of-court negotiations.

Joseph Lubertazzi, Jr., Chair of the Firm’s Executive Committee, focuses his practice on creditor rights. He is skilled in handling commercial litigation, representing financial institutions, secured creditors, special servicers, lessors, and indenture trustees in real and personal property foreclosures, bankruptcy, health care insolvencies, telecommunications insolvencies, and out of court loan workouts. He has more than 40 years of experience representing every type of real property and business—invaluable experience that allows him to maximize recoveries for his clients.

Joe is also experienced in prosecuting and defending lender liability claims.

In the bankruptcy court, he has provided representation to, among others, trustees, creditors’ committees, secured creditors, unsecured creditors, indenture trustees, and plan proponents in all aspects of negotiation and litigation. Significant matters include defaulted loans involving casinos in New Jersey and Mississippi; three hospital bankruptcies; Trump Entertainment, Atlantic City, New Jersey, bankruptcies; law firm bankruptcies; and cases involving Ponzi schemes. He has also represented numerous trustees of IRBs in a state rehabilitation of an insurance company and the subsequent pre-packaged bankruptcies of the insurance company’s real estate subsidiaries.

Joe gained his workout/foreclosure experience representing plaintiff mortgagees and defendant mortgagors in workouts and uncontested and contested foreclosures, aggregating in excess of two billion dollars, including many that involved rent receiverships. He has had significant involvement in these matters from Massachusetts south to Florida.

Building on his debtor/creditor work, Joe has deep experience in many aspects of commercial litigation, including construction litigation, actions under commercial leases, collection of book accounts, and minority shareholder disputes.

Joe has served on the Executive Committee since 2015 and was elected Chair in 2019.

Representing a special servicer in foreclosing on a $220 million defaulted loan secured by a large shopping mall in western New York state.

Representing a lender group in foreclosing on a $240 million defaulted loan secured by a large shopping mall in Connecticut.

Representing a rent receiver on a large New York City building related to a defaulted loan for an approximately $340 million leasehold mortgage.

Representing a rent receiver on a large mall in New York with approximately 250 tenants in a matter involving a defaulted $450 million commercial mortgage loan.

Representing various lenders and special servicers holding more than $1.5 billion in distressed commercial real estate loans, including a $150 million defaulted loan on an occupied office building in New York City and a $276 million matured commercial loan on a three building office complex in Connecticut.

Negotiated and documented loan workouts involving a portfolio of 17 properties in New York City securing approximately $173 million in defaulted loans. The workout involved the negotiation of maturity extension terms, restricting the use of excess cash flow for each property, and trapping excess funds as security for the repayment of all the loans.

Represented the primary/special servicer in a five-property deed-in-lieu transaction for defaulted loans in the approximate amount of $10.3 million, secured by properties located in the tri-state area. The transaction included negotiating the deed in lieu agreements, drafting conveyance documents, and conducting property due diligence to ensure the seamless transfer of the properties and property operations to the holder of the respective loans.

Negotiated and documented a loan workout for a special servicer involving an approximately $53 million defaulted loan. The workout involved the modification of maturity extension terms, a mandatory principal repayment, restrictions on the use of excess cash flow, trapping of excess funds as security for the repayment of the loan, and a “deed in lieu” in escrow with lender's counsel, the enforcement of which is backed by recourse carve-outs to the limited recourse guarantor. We also negotiated a modification of an intercreditor agreement with an existing mezzanine lender. The loan is secured by an un-fractured condominium on a ground lease parcel located in the Northeast.

Represented a real estate developer where the seller refused to comply with contractual obligations and convey title to the developer of property valued in excess of $10 million. Following active discovery practice, including depositions and active court matters addressing motion practice, the matter was successfully settled.

Represented an industry organization appearing as amicus curiae before the New Jersey Supreme Court in an appeal of a mortgage foreclosure action where the borrower argued that, under a provision of New Jersey's Uniform Commercial Code, the assignee of the mortgage could not foreclose because the original note had been lost prior to the assignment. Addressing an issue that had divided courts in other jurisdictions, the New Jersey Supreme Court unanimously adopted the position advanced in the amicus brief, holding that, notwithstanding the loss of the note, the assignee could bring the foreclosure action consistent with New Jersey statutes and common-law principles governing the assignment of mortgages.

Representing a financial institution, a victim of a massive fraud involving in excess of $15 million, involving a borrower who submitted false financial information, pursuing liquidation of assets in three states, defeating arguments of a third party claiming superior liens, addressing issues raised by a bankruptcy trustee, addressing issues of claimed Fifth Amendment privilege raised by loan guarantors, and laying the foundation to successfully pursue third parties under malpractice, negligence, conversion, and tortious interference with the bank’s rights. Litigation has occurred in state courts, state appellate courts, and the bankruptcy court.

Represented successfully a mortgage holder with a $12 million claim in a bankruptcy matter where the debtor entities engaged in a Ponzi scheme involving more than 20 commercial properties and many lenders. Caused rental revenue to be segregated for the benefit of the client, obtained a release so that no claims were brought against the client, and exited the bankruptcy with title to the property within nine months of the bankruptcy filing. Obtained substantial recovery for the client in a relatively short period.

Represented a national bank with claims in excess of $4 million secured by trucking company assets including vehicles. Loan was troubled for two years before we were retained, and within months forbearance terms were negotiated providing for resumption of loan principal payments, releases in favor of the bank, and full payment of the loan including legal fees.

Represented a national bank holding a $22 million claim secured by ocean barges and tugs in a borrower bankruptcy. Assumed a leading role in advancing mediation and ultimate agreement involving the debtor company and the lender group of twelve banks. Additional collateral for repayment of the claim was obtained, all legal fees were reimbursed, and the matter proceeded promptly to a confirmed plan of reorganization, allowing regular loan payments to resume.

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