News & Analysis as of

Breach of Contract Debt

Husch Blackwell LLP

Cannabis Debts, Collections, and Lawsuits

Husch Blackwell LLP on

Cannabis companies of all sizes have likely come across the issue of having to pursue badly behaved accounts receivable. What was once a time of prosperity has now turned into a business climate of pessimism and regret where...more

A&O Shearman

Good faith in secured finance?

A&O Shearman on

The court implied a good faith term constraining a lender’s discretion to refuse a borrower's request to dispose of assets in a secured financing context. A power to consider requests for disposals - A facility agreement...more

DLA Piper

Fifth Circuit Rules that Serta Simmons Bedding, LLC’s 2020 Uptier Transaction Violated Pro Rata Distribution Covenant

DLA Piper on

In a landmark ruling, the US Court of Appeals for the Fifth Circuit ruled that a June 2020 refinancing transaction (the Uptier Transaction) entered by Serta Simmons Bedding, LLC (SSB, or the Debtor) and certain of its lenders...more

Akin Gump Strauss Hauer & Feld LLP

Serta - Fifth Circuit Decision

On December 31, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its long-awaited decision regarding the permissibility of the Serta Simmons Bedding (Serta) uptier liability management exercise (the 2020 Uptier)...more

Morrison & Foerster LLP

Latest Uptier Decisions in Serta and Mitel Remind Contract Language Matters

The caselaw on “uptiers” as liability management exercises (LMEs) grew by two opinions on the last day of 2024. In Serta, the Fifth Circuit reversed the bankruptcy court’s blessing of the pre-bankruptcy uptier and...more

A&O Shearman

Breach it and weep: deemed fulfilment ain’t fictional

A&O Shearman on

The Court of Appeal has held that a party who prevents a condition precedent to their obligation to pay from being met cannot rely on the unfulfilled condition to escape their liability in debt....more

A&O Shearman

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

A&O Shearman on

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

McGlinchey Stafford

Am I Entitled to a Bonus? - McGlinchey Commercial Law Bulletin - February 16, 2024

McGlinchey Stafford on

Ohio- Enforceability of Arbitration Agreement- Bryan Costin v. Midwest Vision Partners LLC., 8th Dist. Cuyahoga No. 112651, 2024-Ohio-463. The Eighth District Court of Appeals recently affirmed the trial court’s ruling...more

A&O Shearman

Deemed fulfilment is a legal fiction which is not part of English law

A&O Shearman on

The High Court has ruled that English law does not recognise a doctrine that deems conditions precedent to a debt as having been fulfilled where the reason they have not been is the fault of the person that would owe the...more

McGlinchey Stafford

The Bullet Point: A Commercial Law Bulletin - When can a non-party enforce a forum selection clause?

McGlinchey Stafford on

The Bullet Point is a biweekly update of recent, unique, and impactful cases in state and federal courts in the area of commercial litigation. We’re pleased to expand the Bullet Point from its previous coverage of Ohio case...more

Gray Reed

Missing Annual Franchise Tax Reports Can Have Big Consequences

Gray Reed on

A corporate client of the firm was recently sued for breach of contract and other violations. However, the company manager found himself facing a personal liability allegation for the company debts....more

BCLP

Absolute Payment Obligations, Frustration & Stay of Execution - Latest Developments

BCLP on

In a decision handed down at the end of April, the Commercial Court, in Wilmington Trust SP Services (Dublin) Ltd and others v Spicejet Ltd [2021], has provided guidance on the English law doctrines of illegality and...more

Patterson Belknap Webb & Tyler LLP

First Department Clarifies Circumstances Under Which Acknowledgment of a Debt Will Toll Limitations Period for Action to Recover...

In Hawk Mountain LLC v. RAM Capital Group LLC, the First Department held that, under New York General Obligations Law (“G.O.L.”) § 17-101, an acknowledgment of a debt tolled the limitations period for an action to recover a...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Week Ending June 26, 2020

Carlton Fields on

Real Property Update - Foreclosure / Condition Precedent: Borrower who raises an affirmative defense, such as failure of conditions precedent, bears the burden of proving that affirmative defense even if lender's complaint...more

Cadwalader, Wickersham & Taft LLP

2019 Year in Review: Securitization Litigation and Regulation

There were significant developments in 2019 as courts continued to issue important decisions in this space and significant legislation impacting the residential mortgage-backed securities (“RMBS”) market came into effect.  A...more

Snell & Wilmer

Borrowers Can Avoid Liability Even After a Trustee’s Sale

Snell & Wilmer on

Since a lender must have a valid debt and valid lien to conduct a trustee’s sale, a borrower that allows the foreclosure sale to occur impliedly agrees that the debt and lien are valid. In Madison v. Groseth and BT Capital,...more

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