Fortress Credit Corp. v. Cohen Bros. Realty (Cohen's $204M UCC-Auction Damages Countersuit)
Developer Charles Cohen has paid off the roughly $187 million personal-guaranty judgment Fortress Investment Group won against him in 2024, but is now pressing his own claim against Fortress for approximately $204 million in damages, alleging the November 2024 UCC Article 9 auction of his real estate portfolio was not conducted in a commercially reasonable manner. Fortress has said it will continue pursuing its own remaining claims against Cohen.
Why it matters
The case, arising from what was widely reported as the largest UCC foreclosure auction in CRE history, shows that satisfying a guaranty judgment does not end a borrower's ability to challenge the underlying foreclosure sale process, and puts renewed scrutiny on how lenders document commercial reasonableness under Article 9 when they are also the winning bidder.
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