BOSTON - A divided panel of the First Circuit U.S. Court of Appeals on Jan. 16 ruled that two property developers had a secured interest in the real property of a bankrupt timeshare, over objections raised by the bank that financed the project (ScotiaBank de Puerto Rico v. Joseph Burgos $(In Re: The Plaza Resort at Palmas Inc.$), No. 12-9005, Chapter 11, 1st Cir.; 2014 U.S. App. LEXIS 890).
WASHINGTON, D.C. - TeleCheck Services Inc. has agreed to pay $3.5 million to settle the U.S. government's allegations that it violated the Fair Credit Reporting Act (FCRA) via its check-authorization business, according to documents filed in a District of Columbia federal court on Jan. 16 (United States of America v. TeleCheck Services Inc., et al., No. 14-0062, D. D.C.).
BALTIMORE - A federal judge in Maryland on Jan. 15 dismissed a consumer's debt-collection complaint, finding that her claims against a law firm are the subject of an arbitration agreement (Keanna Lomax v. Weinstock, Friedman & Friedman PA, No. 13-1442, D. Md.; 2014 U.S. Dist. LEXIS 5082).
OAKLAND, Calif. - Plaintiffs in a shareholder derivative lawsuit against Google directors and officers told a federal court in California on Jan. 16 that certain of the company's directors are not disinterested when it comes to considering demand that the board of directors bring a lawsuit against certain of their own members and company officers (In re Google Inc. Shareholder Derivative Litigation, No. 11-cv-04248, N.D. Calif.).
WILMINGTON, Del. - Certain of a company's directors and officers told a federal court in Delaware on Jan. 16 that because the company has gone private, a now-former shareholder no longer has standing to bring a derivative lawsuit on behalf of the company (Philip Halpert, derivatively on behalf of AsiaInfo-Linkage, Inc. v. Steve Zhang, et al., No. 12-cv-1339, D. Del.).
NEW YORK - The liquidating trust for Residential Capital LLC (ResCap) on Jan. 15 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order approving a settlement agreement among ResCap's bankrupt affiliate, Residential Funding Co. LLC (RFC) and CTX Mortgage Co., Pulte Homes Inc. and PulteGroup Inc. for an undisclosed amount (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).
DETROIT - A group of creditors in the Chapter 9 bankruptcy of the City of Detroit, which includes the union representing city employees and retirees, on Jan. 16 filed a brief objecting to the city's opposition to a motion filed by a group seeking to assess the art collection at the Detroit Institute of Arts to establish a benchmark valuation (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
NEW YORK - A federal judge in New York on Jan. 14 refused to dismiss The Bank of New York Mellon's suit alleging breach of a pooling and service agreement (PSA) related to residential mortgage-backed securities (RMBS), finding that the court is unable to resolve whether a PSA provision limits Mellon's remedy for the alleged breaches (The Bank of New York Mellon v. WMC Mortgage LLC, et al., No. 12-7096, S.D. N.Y.).
LOS ANGELES - The trustee in the Chapter 11 bankruptcy case of GGW Brands LLC, the parent of the adult entertainment company that produces videos carrying the name "Girls Gone Wild," on Jan. 16 filed a status report in which he says he is pursuing a "prompt" asset sale process in light of "interference" by GGW's founder and president (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).
SAN JOSE, Calif. - A shareholder told a federal court in California on Jan. 13 that certain of a company's directors and officers breached their fiduciary duties by making improper and misleading statements about the health of the company despite knowing that demand for the company's products was dwindling (The Police Retirement System of St. Louis v. David A. Flynn, et al., No. 14-cv-00190, N.D. Calif.).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of Pulp Finish 1 Co., formerly the Journal Register Co. (JRC), denied a creditor's motion to reconsider the order confirming the company's reorganization and denied the creditor's contention that the company's asset sale was conducted in bad faith (In Re: Pulp Finish 1 Company f/k/a Journal Register Company, No. 12-13774, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Former Major League Baseball (MLB) pitcher Curt Schilling and his business partners in bankrupt video game company 38 Studios LLC on Jan. 15 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the trustee's motion seeking approval to waive attorney-client and work product privileges (In Re: 38 Studios LLC, No. 12-11743, Chapter 7, D. Del. Bkcy.).
WILMINGTON, Del. - The adult entertainment company that produces material carrying the name "Penthouse" on Jan. 13 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that claims asserted against its bankruptcy estate by its former financial adviser for $3,430,900 should be "denied and expunged" (In Re: PMGI Holdings Inc., No. 13-12404, Chapter 11, D. Del. Bkcy.).
PORTLAND, Ore. - A federal judge in Oregon on Jan. 13 dismissed claims from a consumer's suit alleging that HSBC Nevada NA (HSBC) illegally charged him fees after he notified the bank that his credit card had been stolen but allowed certain Truth In Lending Act (TILA) and state law claims to proceed (Damion Bromfield v. HSBC Bank Nevada NA, et al., No. 13-0462, D. Ore.; 2014 U.S. Dist. LEXIS 4451).
SACRAMENTO, Calif. - The Roman Catholic Bishop of Stockton, Calif., the official name of the Diocese of Stockton, on Jan. 15 filed for Chapter 11 bankruptcy, citing debts ranging from $10 million to $50 million related to paying victims of sexual abuse by priests (In Re: The Roman Catholic Bishop of Stockton, Calif., No. 14-20371, Chapter 11, E.D. Calif. Bkcy.).
ATLANTA - Dismissal of a borrowers' rescission claim in a loan dispute was appropriate because the borrowers did not plead allegations that would provide a right to rescind the mortgage agreement in question, the 11th Circuit U.S. Court of Appeals said Jan. 14, affirming a federal court's rulings (Amadou Wane v. The Loan Corp., et al., No. 13-11597, 11th Cir.; 2014 U.S. App. LEXIS 690).
KNOXVILLE, Tenn. - A U.S. magistrate judge in the U.S. District Court for the Eastern District of Tennessee on Jan. 14 ruled that a judgment creditor who wanted to credit-bid on the assets of a bankrupt property management is permitted to do so (Robert T. Stooksbury Jr. v. Michael L. Ross, No. 09-498, Chapter 7, E. D. Tenn.; 2014 U.S. Dist. LEXIS 4379).
NEW YORK - A Guernsey investment fund's directors and officers and others told a New York federal court on Jan. 13 that a purported shareholder derivative lawsuit should be dismissed because the alleged shareholders do not have standing to bring the suit under Guernsey law (Omega Overseas Partners, Ltd., et al. v. Reade Griffith, et al., No. 13-cv-04202, S.D. N.Y.).
HONOLULU - A federal judge in Hawaii on Jan. 10 ruled that a borrower can be awarded partial summary judgment on his claim for rescission based on a lender's violations of the Truth in Lending Act (TILA), provided he can tender $189,837.87 to reimburse the defendant for the money borrowed (Wendell Tatsumi Koga, et al. v. Eastern Savings Banks FSB, et al., No. 11-00123 DKW-BMK, D. Hawaii; 2014 U.S. Dist. LEXIS 3450).
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 13 affirmed a bankruptcy court's ruling that a debtor was not entitled to claim a homestead exemption for his property because he no longer lived there and had no intention of moving back (William Paul Jr. v. Forrest C. Allred $(In Re: William Paul Jr.$), No. 13-1747, Chapter 7, 8th Cir.; 2014 U.S. App. LEXIS 599).
CHARLESTON, S.C. - A federal judge in South Carolina on Jan. 14 granted summary judgment to the Federal Deposit Insurance Corp. in a foreclosure suit against individuals who borrowed from a bank that subsequently failed, finding that promises regarding loans were oral promises made by employees of the bank and that the borrowers' counterclaims are barred (Federal Deposit Insurance Corp. v. Robert M. Campbell, et al., No. 13-0743, D. S.C.; 2014 U.S. Dist. LEXIS 4513).
WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 14 heard oral arguments in a case dealing with whether Article III of the U.S. Constitution permits the exercise of the judicial power of the United States by bankruptcy courts on the basis of litigant consent and whether a bankruptcy court may submit proposed findings of fact and conclusions of law for de novo review by a district court in a "core" proceeding under 28 U.S. Code Section 157(b) (Executive Benefits Insurance Agency v. Arkinson, No. 12-1200, U.S. Sup.).
CINCINNATI - A shareholder told a federal court in Ohio on Jan. 13 that a company's board of directors wrongly refused the shareholder's demand that the board of directors instigate a litigation against certain of the company's directors and officers (Alan Brosz v. Steven S. Fishman, et al., No. 13-cv-00753, S.D. Ohio).
NEW YORK - The trustee in the Chapter 11 bankruptcy case of the Eastman Kodak Co. on Jan. 14 filed 15 adversary complaints against creditors seeking to recover a total of $4,534,994.90, all of which the trustee says constitute fraudulent conveyances (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).
BALTIMORE - A federal judge in Maryland on Jan. 10 awarded partial summary judgment to a man who rescinded a home equity line of credit he obtained from Capital One Bank N.A., finding that the lender violated the Truth in Lending Act (TILA) by not reimbursing him for the settlement costs, finance charges and interest he paid (Carter Puryear v. Capital One Bank N.A., No. RDB-12-3222, D. Md.; 2014 U.S. Dist. LEXIS 2893).