New England Region
In Berkshire Bank v. Kelly, a security interest did not attach to a pledged investment account when collateral description included reference to the grantor’s property “in the possession of, or subject to the control of, Lender” and the depositary bank never signed the control agreement. For more information about this case, click here.
In Auctus Fund, LLC v. Drone Guarder, Inc., convertible notes with default interest exceeding the Massachusetts statutory maximum violated the Massachusetts Usury Act, because they were not registered with the Massachusetts Attorney General’s office. Click here to find out the outcome and learn more.
In In re Latex Foam International, LLC, et al., Debtors Official Committee of Unsecured Creditors of Latex Foam International, LLC et al., Appellant v. Entrepreneur Growth Capital, Appellee, the District Court affirmed the Bankruptcy Court’s order awarding an oversecured creditor payment of default interest. For more about the facts of the case and the standards used by the court, click here.
In ArrowPointe Federal Credit Union v Bailey, due to lender’s failure to obtain title examination to ascertain existence of intervening liens, the equitable subrogation exception to South Carolina’s race-notice statute was inapplicable and lender did not retain its senior lien priority when it refinanced its own lien. For more information about this case, click here.
In Poly-Med, Inc. v. Novus Scientific Pte. Ltd., the question of whether separate breaches of contract—as South Carolina law does not recognize the continuing breach theory—trigger the same statute of limitations depends on the parties’ contractual relationship and intent, which is to be determined through the court’s factual analysis of the agreement’s language and context. Click here to find out the outcome and learn more.
In Sadler v. Players Recreation Grp., LLC member had no duty to work at the LLC full-time or to contribute to the LLC’s debt where there was no written LLC agreement to do so under Alabama law. For more about the facts of the case and the standards used by the court, click here.
In Wilson v. Cap. Partners Fin. Grp. USA, Inc., a debtor challenged a sale of collateral due to lack of adequate notice. The case was determined based on five specific requirements set forth in Section 9.613 of the Texas Business and Commerce Code. Click here to find out the outcome and learn more.
Rocky Mountain and Western Regions
In In re Mariner Health Central, the United States Bankruptcy Court for the Northern District of California denied the debtors’ motion to extend the automatic stay to certain non-debtor affiliates or to enjoin litigation against such non-debtor affiliates, finding that the debtors had not satisfied the high standard required to extend the automatic stay to its affiliates or grant a preliminary injunction to halt the litigation against its affiliates. For more about the facts of the case and the standards used by the bankruptcy court, click here.
In In re Priddis, the Ninth Circuit Court of Appeals held that an involuntary Chapter 7 bankruptcy petition filed by 14 copyright holders who had obtained an infringement judgment against the debtor was permitted under Section 303(b)(1) of the Bankruptcy Code. Even though the 14 plaintiffs shared a single $3 million judgment, each plaintiff held a separate claim and therefore met the requirement that three or more creditors each hold noncontingent, undisputed claims in the amount of at least $16,750. For more information about this case, click here.
In In re TBH19, the Ninth Circuit Bankruptcy Appellate Panel (BAP) decided whether a claim should have been disallowed under section 502(e)(1)(B) of the Bankruptcy Code as contingent claim for reimbursement or contribution and if the settlement of that claim should have been approved by the bankruptcy court under Bankruptcy Rule of Procedure 9019. The court held that the claim was not subject to disallowance and approval by the bankruptcy court under Bankruptcy Rule 9019 was proper. A detailed summary of the facts and the BAP’s ruling can be found here.