When people are in far more debt than they can handle, they may file for bankruptcy and hopefully get a fresh financial start. If that person had other people co-sign for things like loans, those co-signers might be in some financial trouble of their own. If you co-signed for someone and they have filed or will file for bankruptcy, you should speak to an attorney about how to protect yourself, as you could be liable for paying the other person’s debts. If you file for bankruptcy, co-signers might be on the hook for your unpaid debts. It all depends on which bankruptcy chapter you choose when you file. Chapter 7 generally does not offer much protection for co-signers, but Chapter 13 may shield co-signers from liability for debts, at least to a certain degree. Talk to a lawyer about how you can protect co-signers from the financial backlash of your bankruptcy case. Get a free, private assessment of your case when you call Young, Marr, Mallis & Associates at (215) 701-6519 and talk to our Pennsylvania bankruptcy attorneys. What Happens to Co-Signers if I File for Bankruptcy in Pennsylvania? Not everyone can secure a loan or rent an apartment based on their credit. People with a rocky credit history or young people with minimal credit history might need a co-signer. The co-signer is another person, often with better credit, who co-signs for the loan, apartment, or other debts. If you cannot make payments on your loan or stop paying rent, creditors may go after the co-signer for payment. If you file for bankruptcy, your co-signer might be liable for payment, depending on how you file. Bankruptcy can be a helpful solution for those facing insurmountable debt, but the benefits of bankruptcy might not cover everyone who signed for the loan. Co-signers might be offered few protections, and they might suddenly be responsible for paying your debts. When debts are discharged, only your liability to pay is removed. A discharge of debt does not affect the co-signers liability, depending on which bankruptcy chapter you file under. If you believe filing for bankruptcy is necessary, talk to our Philadelphia bankruptcy lawyers about how to file and protect co-signers. Co-signers are often friends or family members, and protecting them from your financial pitfalls might be of significant interest. How Co-Signers Can Protect Themselves if Someone Files for Bankruptcy in Pennsylvania Your attorney can help you determine the best way to file for bankruptcy to protect co-signers. Remember, there are multiple bankruptcy chapters, and some offer better protections than others. For example, Chapter 13 bankruptcy comes with certain advantages for co-signers that you should consider. According to 11 U.S.C. § 1301(a), after a bankruptcy court issues an order of relief under Chapter 13, creditors may not commence a civil action against a co-debtor or co-signer to collect any part of the debt unless certain circumstances are present. Creditors may only take action against a co-signer if they become liable for the debt in the normal course of their business or if the case is closed, dismissed, or converted to Chapter 7 or 11 bankruptcy. Alternatively, under Chapter 7, there are no protections for co-signers. The automatic stay that normally shields debtors from legal action from creditors does not extend to co-signers. Creditors can go after them for payment while your bankruptcy case is pending. If your co-signer is a family member or close friend, you might want to consider the potential legal consequences your bankruptcy case might have on them. If the bankruptcy option you select offers little protection for co-signers, you might want to consider other ways of paying back the debt. For example, suppose a close friend co-signed on your mortgage, but you defaulted and are facing foreclosure. Bankruptcy may help you here, but you do not want to put your friend at financial risk. If there is a way to liquidate other assets so you can pay your mortgage and avoid bankruptcy, you should consider it. How Bankruptcy Can Affect a Co-Signer’s Credit in Pennsylvania When a person files for bankruptcy, their credit may take a significant hit. However, a co-signer’s credit will not be impacted by the bankruptcy filing, at least not directly. Depending on whether the co-singer is shielded from liability or not may determine how their overall credit is impacted. After someone files for bankruptcy, the court may discharge their debt, and they will no longer be liable for payment. The same does not go for co-signers. A co-signer may still be liable for payment, and creditors may go after them for payment. If a co-signer cannot or chooses not to pay these debts, their credit may drop. Wrose still, they might be unable to afford the debts and have to file for bankruptcy themselves. Can a Co-Signer Sue the Person They Co-Signed for in Pennsylvania? If you co-signed for someone and ended up saddled with their debts because they filed for bankruptcy, you should speak to an attorney about possibly taking legal action against the other person. A lawsuit might be especially effective if the other person has the money to pay their debt but refuses to do so, thus leaving you with their financial burden. If you have reason to believe that the person you co-signed for can pay but refuses to do so, you should talk to a lawyer about suing them. If you end up paying the debt because the debtor refuses to do so, you may sue them for the money you lost. Even if you do not sue them, you may bring up their financial situation to the bankruptcy court if they file for bankruptcy. Bankruptcy is only available for those with little financial resources to pay debts. Those with adequate financial resources will be quickly turned away. This kind of situation might arise when a debtor misled a friend or family member into co-signing a loan. Perhaps your “friend” never intended to pay the debt. Now, they have whatever they used to loan to purchase, and you are left with the bill. Speak to Our Pennsylvania Bankruptcy Lawyers for Support Get a free, private assessment of your case when you call Young, Marr, Mallis & Associates at (215) 701-6519 and talk to our Northeast Philadelphia bankruptcy attorneys.

If your employer maintains something like a retirement fund, disability benefits, or health insurance plans for you and other employees, they might be regulated by ERISA. This is a very complicated area of federal law that aims to protect employees. If your employer or your employer’s insurance company violates ERISA regulations, a lawyer can help you file a claim, but not all claims have happy endings. ERISA claims may be denied for a whole host of reasons. A common reason for claims being denied is that they are filed in the wrong court. While you and your employer might be located in Pennsylvania, ERISA is a federal law that must be heard in federal courts. You might also be denied for failing to follow proper procedures under ERISA. Usually, courts will not even entertain the idea of a claim until it has exhausted any available appeals under ERISA. Claims are also frequently denied due to a lack of proper documentation. If you need help filing a claim, call our Pennsylvania disability attorneys for a free review of your case at Young, Marr, Mallis & Associates at (215) 515-2954. Filing ERISA Claims in the Wrong Court in Pennsylvania The Employee Retirement Income Security Act (ERISA) of 1974 is a very large, complex area of federal law. ERISA applies to employers not just in Pennsylvania but in all 50 states. It may preempt certain areas of state law, meaning employers must follow federal laws when it comes to complying with ERISA. This can sometimes trip people up when they file claims for ERISA violations. Claims may be denied if you file in the wrong court. Since ERISA and related violations are matters of federal law, claims must be filed in federal courts. If you were to mistakenly file your ERISA claim in a state court, it would likely be quickly dismissed, and you would need to refile the case in federal court. While this is not a death sentence for your claim, it might cost you valuable time and resources. Finding the right federal court may be tricky, depending on where you live in Pennsylvania. There are federal courts for Pennsylvania’s western, middle, and eastern districts. There might be multiple federal district courts in each district, and our Pennsylvania disability lawyers will file your case in the appropriate court. Filing an Appeal Under ERISA Before Taking Your Claim to Court in Pennsylvania When an employee believes their employer or the insurance company has violated ERISA, there are certain procedures in place that must be followed. Filing an ERISA claim is not the same as filing a typical lawsuit. Typically, you must file an appeal with the insurer in charge of your disability benefits or other accounts that fall under this law. Violations are often resolved on appeal, and no court case is needed. For example, suppose the violation was due to a clerical error or some other mistake. In that case, it may be quickly corrected, and any money you lost may be paid back, or, if your disability benefits were put on hold, they may be reinstated. Unfortunately, the appeals process does not always work for everyone. Talk to a lawyer about it, as you might need to go through several rounds of appeals before your appellate options are exhausted. At that point, it may be appropriate to file a case in a federal court. If you go to court without ever filing an appeal, the court may quickly dismiss your case. Courts do not like to hear cases if there are other legal options available you could or should have taken first. It is a good idea to exhaust all appellate options under ERISA before taking your case to court. Your lawyer can help you determine what these options are and how long it might take to exhaust them. ERISA Claims Denied for a Lack of Evidence and Documentation Much of the evidence heard in an ERISA claim will likely come from the insurance company’s records of your ERISA claim, including anything that was discovered when you filed an appeal. This is another reason it is important to file an appeal before taking your case to court. The appellate process might beef up the file on your case and provide more information for the court to consider. You might also be able to bring your own evidence and documentation. Check with your attorney about what kind of evidence you are allowed to present. For example, you should have documentation about any claims you filed with your employer and insurance company. You should also have documentation regarding any communications between you and the insurance company. If you do not document your claim, proving you suffered from an ERISA violation may be extremely difficult. While the defendant – your employer, the insurer, or both – might also lack important documentation, they do not have the burden of proof. If you cannot prove your claims, they do not have to prove anything. How a Lawyer Can Help You if Your ERISA Claims Are Denied in Pennsylvania Since ERISA is notorious for being an extremely complex area of law, it is crucial that you have a lawyer assist you throughout your claim, including during the appeals process before you file the case in federal court. An experienced attorney can help you save documentation and build your case as it unfolds. Your lawyer should also help you determine what kind of damages you might be entitled to. If your disability benefits through your job were affected by the ERISA violation, you might be in serious financial trouble. Your lawyer can help you assess how much the violation cost you and get those damages compensated. If your benefits were unlawfully terminated, your lawyer can help you get them reinstated. Contact Our Pennsylvania Disability Attorneys for Legal Support If you need help filing a claim, call our Pennsylvania disability attorneys for a free review of your case at Young, Marr, Mallis & Associates at (215) 515-2954.

W.D.N.C.: Crypto Colo Center v. Dei Vitae Enterprises: Withdrawal of Reference to Bankruptcy Court Ed Boltz Fri, 07/12/2024 - 21:35 Summary: James   and Susan  Burton filed a pro se Chapter 13 bankruptcy case on February 22, 2023,  disclosing a 98.5% ownership interest in Dei Vitae Enterprises.  This was followed on February 28, 2023,  with the Chapter 11 filing by  Dei Vitae Enterprises, LLC (DVE).   Crypto Colo Center filed  identical complaints in both bankruptcy cases on March 24, 2023, soon filing  a Motion to Withdraw Reference.    The Burtons’ Chapter 13 case and the related adversary proceeding were dismissed, rendering the motion to withdraw reference in that case moot.  Crypto Colo filed an amended complaint in the DVE adversary proceeding on July 27, 2023, with 15 non-title 11 causes of action.   DVE’s Chapter 11 case was dismissed on September 6, 2023.   DVE moved to dismiss the adversary proceeding, but the bankruptcy court denied the motions and granted abstention, pending the district court's ruling on the withdrawal motion. The district court found sufficient cause to withdraw the reference of the remaining Adversary Proceeding to the bankruptcy court,  primarily because  the remaining causes of action did not stem from the bankruptcy and were non-core, including federal securities fraud and various state law claims such as fraud, misappropriation, and breaches of fiduciary duty.  In retrieving the case from the bankruptcy court,  the district court also considered the following factors: Uniformity of Bankruptcy Administration: Withdrawal will not impact uniform administration as the issues are non-title 11. Efficiency and Judicial Economy: Withdrawal is more efficient given the bankruptcy case dismissal. Forum Shopping: No indication of forum shopping. Right to Jury Trial: A jury demand has been filed, and bankruptcy courts cannot hold jury trials in non-core matters without consent. Commentary: It seems rather strange that the Burtons  filed a pro se Chapter 13 bankruptcy,  but the nearly wholly-owned Dei Vitae Enterprises was represented by counsel  a mere week later in its Chapter 11 bankruptcy  (which was signed by Susan Burton.)  While this may be a circumstance where potential or actual conflicts of interest between the Burtons and DVE precluded those entities from sharing the same attorney,  this would nonetheless appear to be a good example of how Tall Building Lawyers  might benefit from  cultivating relationships with the consumer debtor bar,  especially to avoid falling into the muck of Chapter 13 practice.  Admittedly,  calling Chapter 11 attorneys TB Ls probably won't endear me to them enough to  result in collaborative referrals..... Given the reticence,  often verging on hostility, from bankruptcy courts to non-title 11 causes of action related to allegations of improper and illegal creditor actions,  this decision shows both how to withdraw an Adversary Proceeding to district court and that such withdrawal increases the durability of any action,  so that it can more readily survive dismissal of the underlying bankruptcy. With proper attribution,  please share this post.  To read a copy of the transcript, please see: Blog comments Attachment Document crypto_colo_center_v_dei_vitae_enterprises.pdf (146.2 KB) Category Western District

The New York Post is reporting that "Companies going bankrupt at the fastest pace since 2020 in historic surge".  They stated that there is a “historic surge” of corporate bankruptcies underway in the US, as debt-saddled companies struggle to adjust to the new era of high interest rates. The story can be found at https://nypost.com/2024/07/11/business/companies-going-bankrupt-at-the-fastest-pace-since-2020-in-historic-surge/?utm_source=gmail&utm_campaign=android_nypJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe help individuals & businesses with too much debt!

Law Review Note: Sarah Holden, Consumer Protection & Bankruptcy Law—Rewarding Repayment: Removing the Fear from Crushing Student Loan Debt Through Alternatives to Discharge, 46 U. ARK. LITTLE ROCK L. REV. 83 (2023) Ed Boltz Wed, 07/10/2024 - 23:20 Available at: https://lawrepository.ualr.edu/lawreview/vol46/iss1/3 Summary: This Note urges a “think outside the box” approach to student loan repayment reform focusing on pre-default opportunities for more effective borrower engagement and more efficient debt management. Section II of this Note reviews the legislative framework that created increasingly harsh treatment of student loan discharge in bankruptcy. Section II then examines the various methods lenders have used to abuse and exploit both borrowers and the judicial system as a result of presumptive nondischargeability. Section III of this Note argues for an interdisciplinary, evidence-based approach to tackling student loan debt management that leverages gamification and rewards by utilizing a servicer-agnostic platform to encourage faster and more efficient debt repayment. Section III also suggests that the burden of funding a student loan management platform should be shouldered by educational institutions relative to the number of student loan borrowers an institution generates and the amount of time it takes borrowers to repay the incurred debt. Finally, Section IV of this Note explores alternative methods of reducing defaults and correcting systemic inequities in student loan borrowing and argues that these alternatives are insufficient to provide the long-term relief sought by millions of people. Commentary: Starting with an excellent overview of student loans and then  bankruptcy,  this law review note proceeds to discuss possible ways of improving student loan repayment through gamification.  That survey of various apps and programs is actually very interesting and detailed,  but the note fails to connect these with bankruptcy,  whether as an alternative or a supplement.  Whether student loan assistance programs,  such as Studentloanify,  might be able to incorporate  (or affiliate with other apps)  gamification to encourage both payments or even more SLA Ps.   With proper attribution,  please share this post.    To read a copy of the transcript, please see: Blog comments Attachment Document consumer_protection_bankruptcy_law_rewarding_repayment_removing_the_fear_from_crushing_student_loan_debt_through_alternatives_to_discharge.pdf (424.91 KB) Category Law Reviews & Studies

If you have retirement or disability accounts through an employer, you might have heard of the Employee Retirement Income Security Act, also known as ERISA. This federal law was created in 1974 and applies to how employers must manage various accounts related to employee retirement. ERISA is highly complex and may be considered a body of law unto itself. ERISA is federal law and applies to all employers, including those in Pennsylvania. Generally, employees do not have to worry about complying with ERISA, as the law governs how employers manage pensions, retirement accounts, long-term disability benefits, and other accounts for the benefit of employees. This law helps to keep your accounts and benefits secure and prevents employers from abusing or mismanaging funds. Violations may range from minor mistakes to serious abuses of authority, and penalties may similarly vary. If you believe your retirement accounts or disability benefits have been mismanaged, speak to an attorney. Call Young, Marr, Mallis & Associates at (215) 515-2954 and get a free review of your case from our Pennsylvania disability benefits lawyers. What is ERISA and What Does it Do for People in Pennsylvania? The Employee Retirement Income Security Act (ERISA) is a federal law enacted in 1974 to protect various accounts and benefits maintained by employers for the benefit of employees. This law applies to all employers who maintain these accounts, including those in Pennsylvania. This means ERISA protects Pennsylvania employees from potential mismanagement of retirement accounts, pensions, and even long-term disability benefits. The law designates employers as fiduciaries of these accounts and holdings, meaning they are responsible for maintaining the accounts in ways that help them grow and ultimately benefit employees. Without ERISA protection, employers could mismanage accounts or exploit funds for their own gain to the detriment of employees. If they do, our Philadelphia disability benefits lawyers will hold them responsible and hopefully get back any funds that were lost. If you have a retirement plan like a 401K or a pension or receive long-term disability benefits through your employer, your account is likely covered by ERISA. However, certain types of accounts might not be covered, and you should check with an attorney to see if ERISA helps you. How ERISA Helps People in Pennsylvania with Retirement or Benefits Plans Essentially, ERISA makes employers who offer retirement programs or benefits packages, including disability benefits, operate those programs honestly and transparently. It also creates a cause of action for those whose funds have been mismanaged, meaning you may sue your employer for mismanaging your disability benefits. ERISA is rather broad and may cover a wide variety of accounts held by Pennsylvania employers for the benefit of employees. According to 29 U.S.C. § 1003(a), ERISA applies to any employee benefit plan if the plan is established or maintained by any employer engaged in commerce, any employee organization representing workers engaged in commerce, or both. This is a very wide net, and many accounts are covered. For those receiving long-term disability benefits through their employer, they should be protected by ERISA. This is extremely important, as your disability benefits might be the only thing helping you make ends meet while you cannot work. ERISA also creates a significant fiduciary duty for employers. A fiduciary has a legal obligation to act in the interests of or on behalf of someone else, often putting their needs above the fiduciary’s. Put another way, your employer is responsible for managing your account, taking care of funds, and working to keep the accounts healthy and well-funded. According to § 1104(a), fiduciaries must perform their duties in the interest of participants (i.e., employees) with the necessary care, prudence, skills, and diligence under the circumstances. These duties may also involve diversifying investments to minimize or mitigate potential losses. What Happens in Cases of ERISA Violations in Pennsylvania? ERISA violations can have a huge impact on employees. When employers violate ERISA, they put employee funds, accounts, and assets at risk. If your employer does something to violate ERISA, your long-term disability benefits might suddenly dry up or otherwise be put in jeopardy. Talk to an attorney immediately if you suspect your accounts or benefits have been abused or mismanaged. Examples of ERISA Violations Many employees do not know when their retirement accounts or disability benefits are put at risk by negligent employers because it is very difficult to fully understand the laws of ERISA. Remember, this is a complex body of law, and you might need an attorney to help you determine if something is truly wrong. A common example of an ERISA violation is a lack of notice. ERISA requires employers to be very transparent with employees about what happens to their accounts and benefits. If your employer plans to invest funds to grow these accounts and make sure there is enough money to keep funding disability benefits, employees must be informed. You should contact your employer if you have not received any information about your accounts or benefits. Depending on what they say, you might want to call a lawyer. Another potential violation is being wrongfully denied disability benefits by your employer. If you are injured and unable to work for the foreseeable future, you might be eligible for long-term disability benefits through your employer. Speak to a lawyer if you are denied. The denial could be a mistake on the part of your employer. If they do not correct the mistake, they may be in violation of ERISA. You should also be concerned about potential breaches of the fiduciary duty. Remember, a big part of ERISA is ensuring employers handle employee accounts and benefits carefully. If you believe your employer is dipping into funds or making unwise investments with these accounts, talk to a lawyer. Enforcement of ERISA ERISA violations may be met with civil penalties, criminal punishments, or both, depending on the situation. Many ERISA violations are accidental. Even employers have a hard time fully understanding the implications of ERISA and their fiduciary duties. In such cases, civil penalties like fines may be imposed in proportion to whatever losses might have occurred. If your accounts lost money, the money should be paid back to you. If you lost disability benefits, those benefits should be restored. Criminal penalties may be imposed in cases where employers knew what they were doing was wrong or illegal. For example, if an employer falsifies information about retirement accounts or disability benefits, they may be criminally charged. Contact Our Pennsylvania Disability Benefits Attorneys for Help Call Young, Marr, Mallis & Associates at (215) 515-2954 and get a free review of your case from our West Chester, PA disability benefits lawyers.

When times get tough, people often look to forms of assistance from public programs or private groups they are a part of. For many, this means filing for Supplementary Security Income (SSI). For others, this might mean getting help through benefits from a union. Still, some people might rely on a combination of benefits. However, it is possible that union benefits might interfere with your SSI benefits. If you are a member of a union, you might already be receiving certain benefits, like pensions or disability benefits. Depending on your situation, you might also be eligible for SSI benefits through the Social Security Administration. Your union membership does not automatically preclude you from SSI benefits, but it might reduce your SSI benefits. In order to make the most of both forms of benefits so that your financial position is more secure, contact a disability lawyer. To receive a free, confidential case evaluation, call our Pennsylvania disability attorneys at Young, Marr, Mallis & Associates at (215) 515-2954. Can I Receive SSI Benefits if I Am in a Union in Pennsylvania? Everyone needs to support themselves financially, but many people have difficulty doing this on their own. They might be ill, have a disability, or have some other reason why they cannot work or cannot earn sufficient income to support themselves. When this happens, people may turn to certain forms of assistance. This might include SSI benefits or benefits through a union membership. If you are a member of a union and receive benefits of some kind, such as disability benefits, for example, you might still be eligible to receive SSI benefits. However, if you plan on taking advantage of both forms of assistance, you should speak to our Pennsylvania disability attorneys, as they might interfere with each other. Generally, eligibility for SSI benefits is based on several criteria, including financial hardship. If your benefits through your union provide you with enough financial support, your SSI benefits might be affected. Even so, it is possible to receive both benefits simultaneously. Exactly how much your SSI benefits are worth might go up or down, depending on what your union benefits are worth. Your attorney can help you make sure you get the best of both. How Union Membership Affects SSI Benefits in Pennsylvania SSI benefits are based on a person’s financial need, among other eligibility criteria. According to 20 C.F.R. § § 416.202(a)-(e), you must be blind, disabled, or aged 65 or older. You must also be a resident of the U.S. and a citizen, lawfully present alien, or child of an armed forces member living abroad. You may not have more resources or income than permitted. According to the SSA, eligible individuals should not be earning more than $1,971 per month. However, certain forms of income are not counted, and you should speak to an attorney to determine if other benefits or assistance count as income. Suppose your union membership benefits provide you with some form of financial assistance. In that case, you might be ineligible for SSI benefits, depending on how much assistance you receive and what form it is in. If you are still eligible for SSI benefits, these benefits could be reduced based on your other sources of income or support. Whether your union membership benefits count as income for purposes of calculating SSI benefits might mean the difference between getting the support you need or not. Talk to your lawyer about the union you are a member of, what kind of support you receive, the value of that support, and any other details surrounding the issue. In some cases, union benefits have little effect on SSI benefits. In others, they might cause SSI benefits to be reduced or even denied. What Do I Do if My Union Membership Changes While Receiving SSI Benefits in Pennsylvania? If you are currently receiving SSI benefits and benefits through a union membership, you must inform the SSA of any changes in your income. For example, maybe your union benefits run out or are terminated for some reason. In that case, you may continue receiving SSI benefits, but they may be adjusted since your income from other sources has been reduced. Changes in your income, resources, and living arrangements must be reported to the Social Security Administration (SSA) each month. If your union membership changes, benefits or other forms of support you might receive might also change. If your union provides you with greater assistance or benefits, your SSI benefits might be reduced or even terminated. If your union benefits cease or are reduced, you might be able to make up the difference with greater SSI benefits. How to Avoid Complications Between Union Memberships and SSI Benefits in Pennsylvania The best way to avoid complications between benefits is to speak to a disability lawyer. If you have not yet filed for SSDI benefits but already receive benefits or assistance through a union membership, talk about it with your attorney. They can help you figure out if your union benefits count as income or may otherwise be used to reduce SSI benefits. If you are currently receiving both forms of benefits and the status of one of those benefits changes, your lawyer can assist you in making sure you do not lose the value of either. For example, if your union benefits increase or are adjusted, they might jeopardize your SSI benefits. However, union benefits are not always counted when the SSA calculates SSI benefits, depending on what kind of assistance you get from your union. The rules surrounding how different benefits affect SSI benefits are very complex. Even non-monetary assistance, like food, clothing, or housing, may or may not count when adjusting SSI benefits. The best thing you can do is speak to an experienced lawyer about your situation. Contact Our Pennsylvania Disability Lawyers for Help To receive a free, confidential case evaluation, call our Philadelphia disability attorneys at Young, Marr, Mallis & Associates at (215) 515-2954.

4th Cir.: Dash BPO v. Lindberg- Dismissal for Failure to Adequately Plead Fraudulent Concealment Ed Boltz Tue, 07/09/2024 - 19:12 Summary: Dash BPO, LLC's brought claims for fraudulent concealment and under various states' Unfair and Deceptive Trade Practices Acts  after  its business relationship with Affinity Global deteriorated due to Lindberg's indictment for an unrelated bribery scheme.   Affirming dismissal by the the district court,  the 4th Circuit held that  Dash BPO had  not pleaded with the necessary particularity to establish a fiduciary or special relationship or active concealment nor had it  adequately alleged that Affinity and Lindberg fraudulently concealed Lindberg's criminal conduct during their business negotiations, which led to the loss of a lucrative contract with Bank of America. Commentary: See the related  posting regarding the North Carolina Court of Appeals decision at Causey v. Southland.    Also the Department of Justice  press release after Mr.  Lindberg was convicted after a retrial for a bribery scheme involving independent expenditure accounts and improper campaign contributions. To read a copy of the transcript, please see: Blog comments Attachment Document dash_bpo_v_lindberg.pdf (195.5 KB) Category 4th Circuit Court of Appeals

W.D.N.C.: Horne v. Credit Acceptance Corp & Horne v. Experian- Pro Se Silence and FCRA Ed Boltz Tue, 07/09/2024 - 17:38 Summary: In paired  cases,  Erica Horne  brought  pro se  actions against  Credit Acceptance Corp.,  Experian, Equifax and Transunion under the Fair Credit Reporting Act,  which, as the magistrate held,   "in its entirety contain[ed] the following factual allegation:" Plaintiff, a consumer, sent a written dispute on or about October 28, 2022, to Defendant, a data furnisher, disputing the completeness and/or accuracy of account Credit Acceptance Corp. – account number XXXXXXXXXX,1 which was in a consumer reports [sic] concerning Plaintiff prepared, maintained and published to others by Defendant, and Defendant negligently and/or willfully failed to follow reasonable procedures to assure maximum accuracy of the date in consumer reports concerning Plaintiff, and investigate, delete, or modify the disputed information, and provide a response to Plaintiff within 30 days of receipt of Plaintiff’s dispute. In ruling on the  motion by Credit Acceptance to compel arbitration, the magistrate found  that, despite Horne's pro se status and her silence, that there was a valid and enforceable arbitration agreement between the parties. (Horne had the option to reject this clause within 30 days, which she did not exercise.)  The magistrate,  however,  recommended that the motion by Credit Acceptance to dismiss be denied without prejudice. In the district court, however,  the credit bureaus  responded to Horne's same pro se silence  by successfully moving for a judgment on the pleadings. There the court  reviewed the motion under Rule 12(c) and determined that the complaint  failed to adequately plead inaccuracies in her credit report, which is necessary for claims under sections 1681e(b) and 1681i of the FCRA.    Further,  Horne's failure to respond to the  motion for judgment on the pleadings by the given deadline despite being explicitly warned that failure to respond could result in dismissal.   Commentary: Whether the magistrate was simply more patient or in a display of subtle antagonism,  subjecting  Credit Acceptance to the costs and further delays of  arbitration validates the more aggressive course taken by the CR As. To read a copy of the transcript, please see: Blog comments Attachment Document horne_v_credit_acceptance.pdf (433.72 KB) Document horne_v_experian.pdf (322.62 KB) Category Western District

One of the many controversial opinions coming from the Supreme Court at the end of its term was Loper Bright Enterprises v. Raimondo, No. 22-451 (6/28/24) which abolished what is known as Chevron deference. The commentators on the podcasts that I listen to were aghast that the Supreme Court felt that judges should hold themselves out to make difficult decisions as to clean air and water or whether to approve a prescription drug when there were agencies who had expertise in these areas.  Several commentators pointed out that it might not be a good idea to rely on federal judges to make scientific determinations after Justice Gorsuch confused nitrous oxide with nitrogen oxide in another case.  \Be that as it may, my one exposure to Chevron deference was an argument in favor of Loper Bright. During Covid, Congress authorized the Paycheck Protection Act. Businesses could receive loans which would be forgivable if they met certain benchmarks such as keeping people employed. However, the SBA in making regulations for PPP loans concluded that companies in bankruptcy should be ineligible. There was nothing in the statutory text that said anything about excluding debtors in possession from receiving PPP loans. As a result, I filed suit after seeing a similar effort succeed in another Texas Court. I did not know what Chevron deference was before filing the adversary proceeding, but it was the death of my case. Trudy's Texas Star, Inc. v Carranza (In re Trudy's Texas Star, Inc.), 2020 Bankr. LEXIS 1729 (Bankr. W.D. Tex. 2020). At the time, I felt that it was silly that the SBA would be better situated than a bankruptcy judge to read a statute and decide whether it should apply to debtors-in-possession. In my opinion, the Administrator's interpretation was not reasonable. However, this interpretation caught on and debtors in bankruptcy lost a valuable source of liquidity. It is cases like this where agency expertise became agency lawmaking that inspired the Court's decision in Loper-Bright.