| Bankruptcy Court Voids Restrictions On Transfers Of Shares And Partnership Interests |
|
December 28, 2009 Link
|
|
|
In an apparent case of first impression, the Bankruptcy Appellate Panel for the Sixth Circuit has determined that certain transfer restrictions in organizational documents for closely-held corporations and partnerships may be ignored by a bankruptcy trustee. The debtor owned 50% of the shares in an Ohio S corporation (“Elm Road”) and 32.5% of the shares in a second Ohio S corporation (“Tuller”). Submitted by Gerald L. Baldwin.
|
 |
| Conflict Of Interest Challenges To Deeds Of Trust Gaining Popularity But Not Success |
|
December 28, 2009 Link
|
|
|
The last few years have seen an increase in litigation between borrowers and lenders, due to, presumably in part, current economic conditions. The real estate lending market has followed this trend as well. To avoid impending defaults or foreclosures, borrowers are increasingly filing suit against lenders as a means of avoiding foreclosure on a house that the borrowers realize they can no longer afford. Many borrowers file suit before the lender even declares the borrower in default or begins foreclosure proceedings. Submitted by Michelle R. Maslowski.
|
|
| Sixth Circuit Reaffirms Discretion Of Bankruptcy Court In Considering Informal Proof of Claim |
|
December 22, 2009 Link
|
|
|
The Sixth Circuit Court of Appeals has reaffirmed that a bankruptcy court has broad discretion in choosing to either allow or deny an unsecured creditor’s “informal proof of claim.” In PCFS Financial v. Spragin, 2009 U.S. App. LEXIS 24915 (Nov. 13, 2009), the Court took the opportunity to revisit several issues decided in the earlier case of Barlow v. M.J. Waterman & Assoc., Inc., 227 F.3d 604 (6th Cir. 2000), affirming that an informal proof of claim is permissible where it is (1) in writing, (2) demands payment from the debtor’s estate, (3) expresses the intention to hold the debtor liable and (4) is filed with the Court. Submitted by Gerald L. Baldwin.
|
|
| Seventh Circuit Addresses When a Credit Card Account is “Open” for Purposes of Section 1637 Claims |
|
December 14, 2009 Link
|
|
|
In Muro v. Target Corporation, 580 F.3d 485 (7th Cir. 2009), the Seventh Circuit addressed the issue of when a credit card account is “open” for the purposes of Section 1637(a) claims. 15 U.S.C. §1637(a) requires a creditor to make certain disclosures “before opening any account under an open end consumer credit plan.” Submitted by Daniel P. King.
|
|
| Ohio Supreme Court Denies Claim Against Third-Party Insurer Arising From Assignment of Prospective Settlement Proceeds |
|
December 7, 2009 Link
|
|
|
The Supreme Court of Ohio recent held in the case of West Broad Chiropractic v. American Family Insurance,1 that a person who was injured in an automobile accident but who did not file or obtain a judgment against the tortfeasor, may not assign her right to proceeds from a prospective settlement or judgment to a medical care provider in exchange for the medical care she received for injuries resulting from the accident. Submitted by Ali Razzaghi.
|
|
| Foreclosure Mediation Programs Examined by the National Consumer Law Center |
|
December 7, 2009 Link
|
|
|
This fall, the National Consumer Law Center released a report reviewing and analyzing 25 state and local foreclosure mediation programs in 14 states, ultimately concluding that significant changes need to occur before such programs can be truly effective. Additionally, the report posits that foreclosure mediation programs should not be viewed as an alternative to legislation that directs servicers and mortgage holders to make affordable loan modifications. Submitted by Lucy R. Dollens.
|
|
| Federal Reserve Board Announces Final Rules on Overdraft Fees for ATM and Debit Card Transactions |
|
December 2, 2009 Link
|
|
|
On November 12, 2009, the Federal Reserve Board announced final rules prohibiting financial institutions from charging consumers overdraft fees on automated teller machine (“ATM”) and one-time debit card transactions, unless a consumer affirmatively consents to participate in the overdraft services provided for those types of transactions. Submitted by Darren A. Craig.
|