John J. Kuster

JOHN KUSTER is a first chair trial lawyer with more than 30 years of experience representing clients faced with high-stakes commercial litigation and disputes matters in federal and state courts, as well as arbitrations. His clients include some of the largest financial institutions, real estate investment companies, and private equity firms, as well as manufacturers, energy companies, and sports and entertainment entities, in the United States and throughout the world. He has successfully represented clients in high-profile “bet the company” cases in federal and state courts in New York, Delaware, and throughout the country. His successful and diverse commercial litigation and disputes practice enables him to be a senior adviser and crisis manager to clients before disputes arise or lawsuits are filed to ensure clients can put themselves in the best possible position for a successful outcome. John partners closely with his clients throughout matters to ensure they are informed and participating in key decision-making.

John also represents parties in all aspects of bankruptcy cases, including a wide array of adversary proceedings, and contested matters. He clients include lenders which are managing distressed debt situations, both in court and out, advising them on remedies and, where necessary, in litigating claims to maximize recoveries for his clients. John is one of the firm’s leading litigators in real estate disputes, representing large lenders in pursuing complex remedies (both judicial and non-judicial foreclosures), as well as in partnership and intercreditor disputes, as well as similar matters involving all aspects of commercial real estate.

His success has led to his designation as one of the global co-leaders of the firm’s Commercial Litigation and Disputes practice.

Strong leadership has earned John recognition in the Legal 500 within the category Litigation: White-Collar Criminal Defense. John serves as a national co-chair of Sidley’s Recruiting of Associates Committee.

The scope of John’s experience is reflected in his representative matters, including the following:

Recent Bankruptcy Litigation Matters

• Co-lead counsel representing parent of debtor in bet-the-company litigation in which the liquidating trustee sought US$14 billion in fraudulent transfer and alter-ego damages in an adversary proceeding in bankruptcy court in Delaware. John successfully argued the summary judgment motion in which the court ruled against the liquidating trustee on its major damages theory, which allowed Sidley’s client to reach a very favorable settlement.
• Represented lender in Delaware bankruptcy court to obtain access to its secured collateral, successfully utilizing a strategy in which lender objected to debtors’ use of cash collateral and filed a lift stay motion for lender, which ultimately drove a negotiated resolution allowing lender to achieve its primary goal of recovering and monetizing its collateral.
• Represented different lender clients in adversary proceedings in which debtors filed after Ponzi scheme imploded and debtors’ former officers were criminally convicted of fraud, including against fraudulent transfer, breach of fiduciary duty, and other claims. Sidley’s litigation strategy allowed lenders to reach favorable settlements in each of these cases.
• Representing overseas bank client in subsequent fraudulent transfer claim adversary proceeding pending in the Southern District of New York relating to the Madoff bankruptcy.
• Conducted several internal investigations for multiple debtor clients and/or special committees of client boards in connection with potential claims against third parties and insiders.

Recent Real Estate and Distressed Debt Matters

• Representing large lender in one of the largest commercial foreclosure actions in New York City, in which lender foreclosed on US$350 million debt against borrower’s property, and successfully obtained dismissal of junior mezzanine lender’s claims seeking to forestall foreclosure and damages from Sidley’s client.
• Representing client in dispute with other members of a limited liability company (LLC) in which the LLC holds large residential buildings throughout New York City and New Jersey.
• Lead counsel for bank in dispute with landlord of bank branch location, where lease has identical or similar provisions for its branches throughout the United States.
• Advising client developer of large warehouses whose efforts are being challenged by local public interest groups; John is coordinating litigation strategy and counseling on potential issues with other stakeholders and landowner.
• Lead counsel in multiple real estate partnership disputes, including multiple-day hearings on emergency litigation in New York state court where Sidley successfully preserved ownership and management rights of property at issue, and defeated motion for injunctive relief in arbitration seeking to preclude opposing party from preventing self-help remedies to force resale of real estate partnership interest back to managing partner.
• Represented company purchasing nonperforming residential mortgage loan in disputes with servicer regarding indemnities and responsibility for alleged nonperforming loans.
• Lead counsel in several actions seeking to recover on notes, guarantees, and similar written instruments in actions in New York Supreme Court for judgment in lieu of complaint under New York Civil Practice Law and Rules § 3213.
• Representing various lenders in distressed asset cases, including defending a creditor from claims seeking to subordinate US$400 million in secured debt owed by the debtor, representing a lender in one of the first major UCC foreclosure sales in New York City, and representing a lender against fraudulent transfer claims in which a trustee is seeking more than US$180 million.
• Successfully asserted and settled claims on behalf of pooled mortgage loan company in separation from former partners, including with respect to disputes regarding for-cause termination of non-managing partners and intellectual property issues.

Other Commercial Litigation Matters

• A consortium, headed by APG Asset Management N.V. (APG), on behalf of the largest Dutch pension fund, ABP, and Australian Retirement Trust (ART), in the acquisition of Riverstone Holdings’ equity stake in Pattern Energy Group LP (pending).
• Represented large hedge fund in alleged tortious interference claim in which plaintiff sought more than US$350 million in connection with government agency’s termination of plaintiff’s agreement concerning mortgage servicing business. Sidley’s litigation strategy resulted in client settling on significant favorable terms.
• Representing client, an auto parts manufacturer, in an action brought by owner seeking US$50 million in damages relating to indemnification, environmental claims, and alleged breaches of a lease arising out of alleged conditions at a manufacturing facility in upstate New York which our client left at the end of the lease.
• Represented CONCACAF, a regional soccer confederation for North America, Central America, and the Caribbean in connection with the United States Department of Justice indictment of a number of its former executives and officers who allegedly were engaged in corruption, bribery, and kickbacks, among other alleged misconduct, including. John’s work has included conducting an internal investigation, renegotiating major commercial contracts, and prosecuting and defending numerous claims arising out of the consequences of the alleged misconduct. Represented CONCACAF before the Court of Arbitration for Sport in appeal by former official to ban imposed on his participation in any football-related activity within the CONCACAF region.
• Lead trial counsel in a bench trial where the firm’s client successfully enforced the provisions of a complex purchase price agreement concerning responsibility for significant environmental liabilities relating to a gas pipeline system.
• Served as co-lead counsel in a three-week federal jury trial, which resulted in a US$125 million verdict in favor of the firm’s client finding that the defendant was liable for breach of fiduciary duty and fraud.
• Obtained a highly favorable settlement for a global investment management firm following a secured receivables-based loan to a special-purpose entity that was wholly owned by the debtor.
• Lead counsel in a dismissed breach of contract and unjust enrichment action against a multinational electronics manufacturer.
• Advised a Fortune 500 company on various aspects, including intellectual property matters, of its €12 billion acquisition and the restructuring of related joint ventures.
• Lead counsel on behalf of several household cleaning product manufacturer defendants, successfully obtaining the dismissal of claims brought under New York environmental laws concerning product ingredient disclosures, and represented a client in a major consumer class action involving contaminated pet food.
• Represented a major high-tech company in a US$250 million fraud case where he successfully obtained summary judgment dismissing the claims through all levels of appeal.
• Successfully represented and defended clients in various breach of contract actions in both federal and state court.
• Conducted several internal investigations for large corporate clients, including Foreign Corrupt Practices Act investigations for a major Japanese trading company and a South American oil and gas company.
• Represented a financial holding company in a dispute under a tax agreement it entered into with a security systems company at the time a security systems company spun off a financial holding company in an initial public offering.
• Represented an auto parts manufacturer in litigation regarding its acquisition of one of the world’s largest suppliers of automotive transmissions.

John serves as a national co-chair of Sidley’s Recruiting of Associates Committee and as a member of the Summer Associate Programs Committee.