News & Analysis as of

Breach of Contract Financial Institutions

A&O Shearman

An interest-ing question: when is a default interest rate a penalty?

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The Court of Appeal has affirmed a three-step test for penalty clauses: (1) is it a secondary obligation; (2) does the clause protect a legitimate interest; and (3) is it extortionate by reference to the legitimate interest?...more

Troutman Pepper

Amici Argue for Narrow Interpretation of National Bank Act Preemption

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A group of non-profit consumer advocacy organizations, the Conference of State Bank Supervisors, and the American Association of Residential Mortgage Regulators filed two separate briefs asking the U.S. Supreme Court to...more

A&O Shearman

Bank’s inability to establish identity of vessel owner results in inability to rely on sanctions clause

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The Court of Appeal found a confirming bank to be in breach of contract by declining to make payment under a confirmation to a letter of credit on the basis that a sanctions prohibition applied....more

Foley & Lardner LLP

Labor and Employment FAQs In Light of Uncertain Financial Times

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Notwithstanding the very recent good news that it appears the federal government and regulators currently have control and a plan in place to limit the impact of Silicon Valley Bank’s (SVB) and Signature Bank’s recent...more

Husch Blackwell LLP

Federal Court Allows Class Action on Deposit Account Fees to Proceed

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A New York federal court has largely denied a state credit union’s motion to dismiss a class action lawsuit regarding non-sufficient funds (NSF) fees, overdraft fees, and out-of-network ATM fees. See Fairchild-Cathey v....more

Spilman Thomas & Battle, PLLC

Promissory Notes - Banking & Finance Insights: V 3, Issue 1, January 2023

Plaintiffs Pursuing Increased Class Action Breach of Contract Claims for Overdraft Fees and Charges Against Customers - “With plaintiff attorneys seeing potential large dollar settlements and verdicts, along with increased...more

McGlinchey Stafford

Is My Electronic Signature Valid? - Commercial Law Bulletin - June 10 2022

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Ohio- Uniform Trade Secrets Act Sal’s Heating & Cooling, Inc. v. Bers Acquisition Co., 8th Dist. Cuyahoga No. 110685, 2022-Ohio-1756- In this appeal, the Eighth Appellate District affirmed the trial court’s decision,...more

ArentFox Schiff

Municipal VRDO Class Action Survives Banks’ Request for Dismissal

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Financial institutions should work with outside counsel to ensure that their internal policies and external actions minimize conduct that may violate state and Federal laws and regulations, and incentivize employees to reward...more

Jackson Walker

COVID-19 & Your Business: Frequent Questions

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With heightened concern about the possible spread of COVID-19, a number of issues arise that concern businesses of all kinds. In this article, we discuss some questions companies frequently ask. Because physicians and...more

BCLP

Indonesia in Focus - February 2020

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Constitutional Court Accepts Judicial Review of Fiducia Security Law - Following the judicial review of Article 15(2) and Article 15(3) of Law No. 42 of 1999 on Fiducia Security (the “Fiducia Law”), the Constitutional...more

Troutman Pepper

Depository Financial Institution Liability: Tough Lessons Learned About Fraudulent Electronic Funds Transfers

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A federal district court in the Eastern District of Pennsylvania recently issued a prescient opinion upholding traditional contract principles in this fast-moving technological age of electronic financial transmissions. ...more

Jones Day

"Serious Irregularity" in Bank Merger Matter Triggers English Commercial Court's Award Set-Aside

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The Situation: A bank owner and an investor entered into an agreement in which the investor would provide the funds necessary for a merger of two banking entities in return for a minority interest in the acquired bank. The...more

Bass, Berry & Sims PLC

Chris Lazarini Discusses Financial Institution’s Fiduciary Duty to Beneficiary

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Bass, Berry & Sims attorney Chris Lazarini discussed a case centered around three IRA accounts and the duty that UBS had to the beneficiary following the death of the client/IRA account holder. Prior to the client’s death,...more

Jones Day

Italy: New Rules on Financial Leases Provide Clarity

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Law no. 124 of August 4, 2017 ("Law 124") provides important new rules on financial leases in Italy. It introduces a statutory definition of "financial lease" and deals with the event of serious breach (grave inadempimento)...more

Carlton Fields

Real Property & Title Insurance Update: Week Ending May 19 & 26, 2017

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Real Property Update - Foreclosure/Standing/Lost Note: if plaintiff did not have right to enforce note when lost, plaintiff should present evidence of assignment from payee to plaintiff or affidavit of ownership - ...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

Financial Industry Developments - SEC Adopts T+2 Settlement Cycle for Securities Transactions - On March 22, 2017, the Securities and Exchange Commission (SEC) adopted an amendment to Rule 15c6-1(a), shortening the...more

Stinson LLP

Emerging Trends Newsletter - Q4

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The Volcker Rule Under the Trump Administration - The so-called Volcker Rule—named after Paul Volcker, a former chairman of the Federal Reserve Board—was part of the Dodd-Frank Wall Street Reform and Consumer Protection...more

Carlton Fields

Real Property & Title Insurance Update: Weeks Ending November 18 & 25, 2016

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REAL PROPERTY UPDATE - Settlement/Waiver: borrowers permitted to raise affirmative defenses and counterclaims against lender where subject Loan Modification Agreement failed to include waiver of claims, affirmative...more

Robins Kaplan LLP

Your Daily Dose of Financial News

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And we thought Brexit was something. Buckle up. It’s going to be a wild market ride... Whoa....more

Skadden, Arps, Slate, Meagher & Flom LLP

Corporate Finance Alert: Court Ruling May Broaden Noteholders' Ability to Receive Redemption Premiums Following Indenture Defaults

On September 19, 2016, the U.S. District Court for the Southern District of New York granted summary judgment to Wilmington Savings Fund Society, FSB, with respect to claims brought against Cash America International, Inc. in...more

Ballard Spahr LLP

Appellate Court Holds HUD Regulations Don’t Provide Private Right of Action Unless Incorporated into Written Agreement

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A federal appeals court recently decided that a plaintiff could not assert a claim against the issuer of a reverse mortgage for breach of regulations issued by the U.S. Department of Housing and Urban Development (HUD), when...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

Agencies Issue Proposal on Method to Adjust Threshold for Exempting Small Loans from Special Appraisal Requirements - On July 22, 2016, the Consumer Financial Protection Bureau, the Federal Reserve Board and the Office...more

Robins Kaplan LLP

Your daily dose of financial news - The Brief – 7.7.16

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Disgraced Wall Street scion Andrew Casperson has pleaded guilty to federal wire and security fraud charges related to his Ponzi-like scheme in which he bilked nearly $40 million from friends and a private foundation....more

King & Spalding

Eighth Circuit Finds That Insurance Coverage Extends To Fraudulent Losses Caused By Computer Hacker

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On May 20, 2016, the U.S. Court of Appeals for the Eighth Circuit affirmed breach-of-contract claims brought by Minnesota-based State Bank of Bellingham (“Bellingham Bank”) against BancInsure Inc. (“BancInsure”), an insurance...more

Dorsey & Whitney LLP

Second Circuit Deals Blow to Government’s Use of FIRREA as an Enforcement Tool

Dorsey & Whitney LLP on

When does a breach of contract amount to fraud? Last week the Second Circuit answered this question and reversed a $1.27 billion judgment against Bank of America and a $1 million judgment against a former executive for their...more

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