BANKRUPTCY: Debtor’s intervention constituted consent to jurisdiction… divorce releases constituted fraudulent transfer, do not shield Debtor from liabilities to Yellowstone Club Liquidating Trust… Yellowstone Mountain Club’s fiduciary claims not time-barred… Debtor breached fiduciary duties to Club even though Club technically owned by alter ego… Debtor’s loan from Club was constructively fraudulent transfer… in pari delicto erroneously applied to reduce damages to liquidating trust… Kirscher/Haddon affirmed, reversed (unpublished). [Read more…]
Bankruptcy, assets transfer preliminary injunction
BANKRUPTCY: Preliminary injunction properly issued against assets transfer… Kirscher/Molloy affirmed (unpublished). [Read more…]
Lending breach, $52,037,593 verdict, TARP
LENDING BREACH: Montana law improperly applied over Michigan contract provision… under Michigan law constructive fraud, prospective economic advantage, and deceit would not have been permitted to go to jury as stand-alone tort, only remaining claims are contractual in nature, do not provide basis for punitives… improper evidence of failure to use TARP money for borrower irrelevant, prejudicial, could have influenced jury… $52,037,593 verdict for start-up international office products facility based in Butte that failed when accounts were swept reversed, remanded for new trial on contract claims… punitives cap vis-à-vis $10.5 million award not addressed… Krueger affirmed, reversed. [Read more…]
Bankruptcy, appeal standing, choses in action
BANKRUPTCY: Yellowstone Club co-founder with choses in action has standing to appeal confirmation of Plan… appeal as to exculpation clause not equitably moot… appeal as to other requested relief which would require unraveling Plan equitably moot… Haddon affirmed, reversed (unpublished). [Read more…]
$16,769,000 punitives review, $7,591,302 fees/costs
PUNITIVES REVIEW: $16,760,000 punitives upheld on top of $286,550 compensatory verdict for bank’s wrongful set off/breach of contract with logging company… punitives cap unconstitutional… $7,500,482 fees based on 44% contingency, $90,820 costs… McLean. [Read more…]
Bankruptcy, $22 million claim reconsideration
BANKRUPTCY: Reconsideration of order allowing B Shareholders a $22 million claim properly denied absent convincing explanation for delay in filing motion… Kirscher/Haddon affirmed (unpublished). [Read more…]
Bankruptcy/sanctions, $13,820,140 property/bond
BANKRUPTCY/SANCTIONS: Appeal from Bankruptcy Court’s denial of motion to vacate preliminary injunction moot… alternative sanctions of liability of greater of $13,820,139.84 or value of property and bond in like amount remedial in nature, not criminal, terminating sanctions may be avoided by posting bond… Kirscher/ Haddon affirmed (unpublished). [Read more…]
Lending breach, $52,037,593 verdict appeal issues
LENDING BREACH: Issues narrowed in appeal of $52,037,593 verdict including punitives cap constitutionality… order. [Read more…]