Lenders Don't Owe Brokerage Fee On Energy Loan: 5th Circ.

Law360, New York (January 9, 2014, 6:23 PM EST) -- The Fifth Circuit on Wednesday reversed a lower court's decision finding that two financing firms were liable to pay a brokerage fee over a loan for a startup business in the oil and gas industry, saying that a provision in the loan agreement blocked payment.

A three-judge panel determined that a Texas federal court had erred in its decision because the borrower, Aruba Energy LLC, had gone into default, which triggered a provision in the loan agreement that made it so financing firms FCS Advisors Inc....
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