Michigan Supreme Court Issues Important Ruling in LLC Member Oppression Case
In Frank v. Linkner, decided on May 15, 2017, the Michigan Supreme Court made several important rulings involving limited liability company member oppression claims. First, the Court held that member oppression claims accrue under MCL 450.4515 when...
Sixth Circuit Holds "Insured-Versus-Insured" Exclusion Applies to Liquidating Trustees
The Sixth Circuit Court of Appeals recently held in a 2-1 decision that an “insured-versus-insured” exclusion found in a directors’ and officers’ liability insurance policy applied to a breach of fiduciary duty claim brought by a liquidating...
Sixth Circuit Holds Assignment of Rents Is Transfer of Ownership Under Michigan Law
Resolving conflicting holdings in the Eastern District of Michigan, the Sixth Circuit recently held that an assignment of rents is a transfer of ownership under Michigan law and the assignor retains no residual property rights in the assigned rents....
Michigan Supreme Court Permits Jury Waiver Regarding Award of Attorney Fees
The Michigan Supreme Court recently held that a plaintiff waived her right to a jury regarding the award of attorney fees. In Barton-Spencer v. Farm Bureau Life Ins. Co. of Michigan (Mich. April 14, 2017), the plaintiff had signed an agreement...
Supreme Court Holds Time-Barred Bankruptcy Proof of Claim Does Not Violate Fair Debt Collection Practices Act
The United States Supreme Court recently held that the filing of a time-barred proof of claim "is not a false, deceptive, misleading, unfair, or unconscionable debt collection practice within the meaning of the Fair Debt Collection Practices Act." ...
Supreme Court Rejects Structured Dismissals That Violate Bankruptcy Priority Distribution Scheme
The United States Supreme Court recently held that “[a] distribution scheme ordered in connection with the dismissal of a Chapter 11 case cannot, without the consent of the affected parties, deviate from the basic priority rules that apply under...
Michigan Court of Appeals Holds That Not All Common-Law Unfair Competition Claims Are Preempted by Michigan Uniform Trade Secrets Act
In Planet Bingo, LLC et al. v. VKGS, LLC, the Michigan Court of Appeals recently held that not all common-law unfair competition claims are preempted by the Michigan Uniform Trade Secrets Act (“MUTSA”). While holding that MUTSA preempts claims...
Intercreditor Agreement Enforced Despite Restructuring of Priority Debt
The Bankruptcy Court for the District of Delaware recently upheld the terms of a pre-petition intercreditor agreement by ruling that the first lien rights of an asset based lending group were not impacted by the pre-petition restructuring of the...
Badges of Fraud Shift Burden of Proof to Judgment Debtor Defendant
The Michigan Court of Appeals recently reiterated that the burden of proof shifts to a fraudulent transfer defendant to establish that a transaction was “in all respects bona fide” when a plaintiff establishes the elements of a fraudulent...
