A judge on Friday said that Credit Suisse must pay a unit of Highland Capital Management $287.5 million over a soured real estate loan, a win for James Dondero's hedge-fund firm in its multipronged fight against the Swiss bank over luxury developments, Dow Jones Daily Bankruptcy Review reported today. Judge Dale B. Tillery of U.S. District Court in Dallas County, Texas, said that Credit Suisse must pay $211.9 million in damages and restitution and $75.6 million in prejudgment damages and interest for breach of contract on a loan tied to the Lake Las Vegas planned community, which went into bankruptcy in 2008. The case was tied to a $40 million award against Credit Suisse and property appraisers over inflated appraisals used for the development projects. Highland sought an award from Judge Tillery of another $340 million, in connection with a Texas jury's finding that Credit Suisse committed fraud in connection with appraisals for the Lake Las Vegas loans. Highland is now entitled to either the $40 million or the $287.5 million, but not both.
