Montana Law Week

The Weekly Digest of Montana Law

Settlement challenge, banks’ “check kiting” scheme

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SETTLEMENT CHALLENGE: Adversary proceeding against Debtors’ banks alleging involvement in check-kiting scheme barred by settlement and general release 6 years earlier… proceeding dismissed with prejudice based on collateral estoppel after allowing Trustee to amend complaint to address defects requiring dismissal of prior complaint… Holt. [Read more…]

Settlement challenge, banks’ check-kiting scheme

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SETTLEMENT CHALLENGE: Adversary proceeding against 2 of Ch. 11 Debtors’ banks alleging involvement in check-kiting scheme barred by settlement and general release 5 years earlier… passive nondisclosure not grounds to invalidate release… adversary proceeding dismissed for failure to state claim but Trustee granted limited leave to amend… Holt. [Read more…]

$2,998.962.51, usurious merchant cash advance financing

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AVOIDANCE CLAIMS involving preference & usury claims arising from merchant cash advance financing of restaurants resolved in favor of Trustee… Trustee entitled to recover money in segregated account plus attorney fees for total judgment of $2,998,962.51 subject to conditional reduction of any imputed interest included in preference judgment… Holt. [Read more…]

Judge substitution, within 30 days of service/appearance

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JUDGE SUBSTITUTION: A plaintiff must file a substitution motion within 30 days of service of the summons or of an adverse party’s appearance, whichever is first… motion filed more than 30 days after service was void and Whelan improperly transferred case to Krueger… because Krueger never had jurisdiction, his denial of Plaintiff’s motion to change venue is vacated. [Read more…]

False Claims Act, qui tam, Salish Kootenai College

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FALSE CLAIMS ACT: Qui tam against Salish Kootenai College for allegedly providing false student reports to retain grants improperly dismissed on basis of tribal sovereign immunity, remanded for application of White as to whether College, as a “person” under FCA, functioned as arm of Tribe… Morris reversed. [Read more…]

Bankruptcy, fraudulent transfer, marital estate

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BANKRUPTCY: Debtor’s interest in $400 million marital estate improperly excluded in determining insolvency at time of $13 million loan for fraudulent transfer purposes… lender’s challenge of holding that res judicata precluded Trustee’s usury claim waived… Kirscher/Christensen affirmed, reversed (unpublished). [Read more…]