Jacobs P.C. Wins Landmark Court Victory, Defeating $280 Million in CMTG Guaranty Claims

PRESS RELEASE

FOR IMMEDIATE RELEASE
October 16, 2025

Jacobs P.C. Defeats Over $280 Million in CMTG Guaranty Claims in Landmark Court Victory

NEW YORK, NY — In a decisive courtroom win across multiple high-stakes commercial actions, Leo Jacobs, Founder of Jacobs P.C., successfully defeated more than $280 million in lender claims brought by affiliates of CMTG (Mack Real Estate Credit Strategies) against prominent real estate developers Meyer and Joseph Chetrit.

In two companion rulings, Justice Nancy M. Bannon of the Supreme Court, New York County, Commercial Division, denied CMTG’s motions for summary judgment in their entirety, converting both cases to plenary actions and directing the parties to proceed to discovery.

The first case involved over $223 million in alleged obligations under three carry guaranties, while the second sought $58 million under related agreements. Justice Bannon ruled that both actions required “extensive extrinsic proof” and therefore did not qualify for expedited summary enforcement under CPLR 3213.

“These rulings reaffirm that even the most sophisticated lenders must play by the rules,” said Leo Jacobs, who personally argued the motions. “You cannot use a guaranty as a shortcut to judgment when the facts require scrutiny. Justice Bannon’s decision ensures due process prevails over pressure.”

Both orders, dated October 10, 2025, follow Jacobs’s in-person oral arguments on May 13, 2025, in which he represented the Chetrit brothers across five coordinated actions totaling more than $280 million in alleged exposure. The decision represents a sweeping procedural victory, allowing the defendants to fully litigate their defenses—including challenges to standing, defective assignments, and conflicts of interest.

Jacobs P.C., a boutique litigation and restructuring firm, continues to represent Meyer and Joseph Chetrit as discovery proceeds toward the next hearing.

About Jacobs P.C.

Jacobs P.C. is a boutique corporate bankruptcy and commercial litigation law firm with more than 100 years of combined experience. The firm provides innovative, results-driven legal solutions for complex business challenges, helping clients regain control and achieve strategic outcomes through negotiation, advocacy, and litigation.

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R[AR]E Public Relations
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🌐 www.jacobspc.com