John E. Zummo
Shareholder
T: +1 (312) 609 7853
F: +1 (312) 609 5005
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Chicago
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John E. Zummo is a Shareholder in Vedder Price’s Commercial Litigation and Corporate Reorganization, Bankruptcy and Insolvency groups.
Mr. Zummo focuses his practice on representing secured and unsecured lenders in litigation, bankruptcy and receivership proceedings, as well as out-of-court workout and restructuring matters. Mr. Zummo’s clients include financial institutions and equipment manufacturers involved in an array of financing transactions, including asset-backed lending and equipment financing and leasing. Mr. Zummo has significant experience prosecuting breach of contract, replevin, fraud and conspiracy claims against defaulting commercial borrowers, defending lender liability actions, representing creditors in bankruptcy main case and adversary proceedings, negotiating workouts and restructurings of commercial loan and equipment financing arrangements and handling UCC sales. He has also represented corporate clients in a wide range of other matters, including: interlender disputes; government investigations; defending class action consumer fraud, federal securities fraud and shareholder derivative claims; common-law fraud and breach of fiduciary duty claims; and defending mechanic’s lien claims.
Mr. Zummo has experience in all aspects of litigation, appeals and postjudgment proceedings in courts throughout the US, including over 20 bench and jury trials. Prior to entering private practice, Mr. Zummo served as a Judge Advocate in the United States Navy and a Special Assistant US Attorney in the Central District of California. Mr. Zummo was selected for inclusion in 2012 Illinois Super Lawyers.
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- Represented a senior secured creditor in the chapter 11 bankruptcy proceeding of a paper manufacturing and converting company, including adversary proceedings to determine the allocation of over $22 million in proceeds from the 363 sale of the debtor’s assets. In that action, Mr. Zummo tried and defeated the claims of several mechanic’s lien claimants that asserted liens on the proceeds from the 363 sale of the debtor’s assets (the opinion is reported at 2008 WL 2859103), as well as the debtor’s 552(b) claim seeking a $1 million carve-out from the proceeds of the 363 sale (the opinion is reported at 393 B.R. 89).
- Represented a member of the lending group in the workout of a $200 million syndicated revolving and term loan credit facility, in which the borrower claimed that Mr. Zummo’s client was a defaulting lender. Mr. Zummo disposed of the claims that his client was a defaulting lender—without recourse to litigation—and ultimately negotiated a full payoff of the principal, interest and fees owed to his client.
- Successfully represented a commercial finance company in state court litigation arising out of an equipment finance lease transaction in which the equipment supplier failed to deliver the equipment, misrepresented the status of the equipment and attempted to resell the equipment in a separate transaction. In that action, Mr. Zummo replevied the equipment and coordinated a UCC sale. Mr. Zummo then obtained a summary judgment against the lessee and guarantor for the deficiency, as well as against the equipment supplier for breach of the purchase order and against the supplier’s principal for fraud and conversion, including an award of punitive damages.
- Represented a commercial finance company in a federal district court action against defaulting guarantors of commercial borrower’s obligations under a multimillion-dollar asset-based revolving and term loan credit agreement. In that action, Mr. Zummo obtained the dismissal of the defendants’ lender-liability counterclaims, persuaded the court to strike all of the defendants’ affirmative defenses, and obtained summary judgment in favor of the lender on all claims. The opinions are reported at 2006 WL 6000465 and 2007 WL 5417734.
- Represented a commercial finance company in state court litigation for breach of medical equipment finance leases and loan agreements, and related guaranties. In that action, Mr. Zummo defeated the guarantor’s efforts to use the principal obligor’s bankruptcy to delay adjudication of the state court litigation, and ultimately obtained summary judgment in favor of the lender on all claims (including the guarantor’s fraudulent inducement defense) in the amount of over $4.8 million.
- Represented a commercial finance company in a federal district court action in which a defaulting lessee of medical equipment brought claims against the finance company (which financed several equipment leases) based on the alleged conduct of the equipment manufacturer. Mr. Zummo obtained the dismissal of all of the lessee’s claims against the finance company (the opinion is reported at 2008 WL 2114867), leaving only the finance company’s counterclaims for breach of the leases. Ultimately, all of the lessee’s obligations to the finance company were resolved amicably.
- Represented a commercial finance company in a multimillion-dollar state court action for breach of equipment leases. Shortly after filing the complaint, Mr. Zummo negotiated a workout of the borrowers’ obligations to the finance company in the form of a settlement agreement and stipulation for judgment. When the borrowers defaulted on their obligations under the settlement agreement, Mr. Zummo utilized the consent judgment to negotiate a forbearance agreement under which the borrowers paid all amounts owed under the initial agreement, plus additional amounts that exceeded all of his client’s costs and fees.
- Represented the defendant in a Telephone Consumer Protection Act (TCPA) class action matter in which potential damages exceeded $24 million. Mr. Zummo negotiated a settlement under which the class agreed not to seek any damages from his client.
- Represented the senior secured and TIP lender in the contested aspects of a chapter 11 bankruptcy action involving a $30 million asset-based credit facility, including a cash collateral dispute and the investigation of fraud, conspiracy and breach of fiduciary duty claims against the debtor’s officers and directors.
- Obtained summary judgment on behalf of an audit committee member and outside general counsel of a publicly traded corporation on federal securities fraud, common law fraud, negligent misrepresentation and Illinois Consumer Fraud Act claims arising out of a $74 million equipment lease securitization. The opinion is reported at 2004 WL 1977572.
- Won the dismissal, with prejudice, of a purported class action complaint alleging unlawful credit collection practices under the Truth in Lending Act, the Fair Debt Collection Practices Act and the Illinois Consumer Fraud Act. The opinion is reported at 2003 WL 25765398.
- Helped negotiate an out-of-court resolution to a dispute between commercial lenders regarding allocations in a multimillion-dollar loan syndication.
- Represented a commercial finance company in a dispute regarding the indemnification provisions of an asset purchase agreement arising out of the UCC sale of a borrower's assets.
- Representing a global medical equipment manufacturer and a commercial finance company in the receivership of a regional medical center.
- Representing an equipment manufacturer in all aspects of the chapter 11 bankruptcy proceeding of an equipment distributor.
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- J.D., cum laude, The John Marshall Law School, 1997
- B.A., cum laude, Marquette University, 1992
- Illinois
- District of Columbia
- US District Court, Northern District of Illinois (Trial Bar)
- US Court of Appeals, Seventh Circuit
- US Court of Appeals, Fourth Circuit
- Member, American Bankruptcy Institute
- Member, American Bar Association, Business Law and Litigation Sections
- Member, Equipment Leasing and Finance Association
- Member, District of Columbia Bar
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