Wells Fargo And PNC Look To Toss Beverly Hills Hotel Suit – Law360

By Joyce Hanson (May 19, 2022, 8:55 PM EDT) — Wells Fargo and a PNC Bank unit are pushing a New York federal court to toss a Beverly Hills hotel owner’s suit claiming they wrongfully demanded payment of “default interest” on a $38 million loan during the COVID-19 pandemic, saying the owner knows it breached the loan agreement.

The claims asserted by Luxe Rodeo Drive Hotel’s owner, 360 N. Rodeo Drive LP, show that it knowingly agreed to default events and fees laid out in the $38 million loan agreement and that it also knowingly defaulted when it closed the hotel voluntarily and ceased to operate the property as a hotel,…