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Second Circuit holds that SIPA does not permit an inflation or interest adjustment to “net equity” claims for customer property

In In re Bernard L. Madoff Investment Securities LLC, No. 14-97-bk(L), 2015 WL 727965 (2d Cir. Feb.

USA, Capital Markets, Insolvency & Restructuring, Litigation, Sheppard Mullin Richter & Hampton LLP, Broker-dealer, Inflation, Second Circuit
Commercial division rules on enforceability of liquidated damages clauses

In Wells Fargo Bank Northwest v. US Airways, Inc., 2011 NY Slip Op 52188(U) (Sup. Ct. N.Y. County Dec. 1, 2011), Justice Bernard J. Fried held that a liquidated damages provision requiring payment of a holdover fee equal to twice the monthly rent was reasonable and did not function as a penalty under New York contract law. The case arose from three aircraft sale and leaseback transactions, pursuant to which Defendant US Airways, Inc. (“US Airways”), sold to Plaintiff Wells Fargo Bank Northwest (“Wells Fargo”), and Wells Fargo leased back to US Airways, three Boeing 737 aircraft.

USA, New York, Aviation, Insolvency & Restructuring, Litigation, Sheppard Mullin Richter & Hampton LLP, Liquidated damages, Wells Fargo
Indiana Court of Appeals holds that claim under the Fair Credit Reporting Act survives bankruptcy and must be arbitrated

On July 26, 2010, the Indiana Court of Appeals, in the published decision of Green Tree Servicing, LLC., v. Brian D. Brough, No. 88A01-0911-CV-550, addressed the issue raised by Appellant Green Tree as to whether the trial court erred by vacating its prior Order directing the parties to arbitrate their dispute, which involved a prior bankruptcy filing and a claim under the Fair Credit Reporting Act.

USA, Indiana, Arbitration & ADR, Company & Commercial, Insolvency & Restructuring, Litigation, Frost Brown Todd LLP, Bankruptcy, Arbitration clause, Waiver, Debt, Mortgage loan, Jury trial, Bankruptcy discharge, Wells Fargo, Fair Credit Reporting Act 1970 (USA), Ninth Circuit, Indiana Court of Appeals