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Void ab initio

Buchalter

Contract Void Ab Initio: Key Insights into the KBR vs. Corps of Engineers Affirmative Defense

Buchalter on

In a recent Board decision dated December 13, 2023, the United States Army Corps of Engineers sought to amend its answer in the case of APPEALS OF – KELLOGG BROWN & ROOT SERVICES, INC., under Contract No. W912GB-13-C-0011....more

BakerHostetler

Supreme Court of Georgia Upholds 6-Week Abortion Law

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The Supreme Court of Georgia issued an opinion reversing the Superior Court of Fulton County’s 2022 ruling that Sections 4 and 11 of the Georgia LIFE Act (the Act) were void ab initio....more

Carlton Fields

STOLI Fallout: Stepping Into the Post-Void

Carlton Fields on

The phenomenon of void ab initio life insurance policies has “spawned a host of thorny questions regarding the appropriate remedial response to the identification of a policy as STOLI.” The Supreme Court of Delaware...more

Ervin Cohen & Jessup LLP

When Should A Receivership Be Terminated?

Q: I was appointed a receiver to collect a judgment. I have not yet filed my final account and report, the court has not approved my final fees. Other creditors of the judgment debtor are demanding that I pay them, because...more

King & Spalding

STOLI Policy? Don't Count on the Return of Premiums

King & Spalding on

Two Recent Decisions Throw Cold Water on Investors’ Ability to Get Their Premiums Back on Policies Deemed Void Ab Initio - In the latter half of 2022, the Seventh Circuit Court of Appeals and the Delaware Supreme Court—two...more

Orrick, Herrington & Sutcliffe LLP

3rd Circuit: Now-invalid default judgment still in effect when debt collection attempts were made

On January 11, the U.S. Court of Appeals for the Third Circuit affirmed a district court’s decision to grant summary judgment in favor of defendants accused of violating the FDCPA when attempting to collect on a judgment that...more

Burr & Forman

Third Circuit Finds Vacatur of Default Judgment Does Not Make Collection Activity Retroactively Unlawful

Burr & Forman on

On January 11, 2023, the Third Circuit held that attempting to collect on a default judgment did not constitute using "'false, deceptive, or misleading' representations in connection with collecting the judgment" if the...more

BakerHostetler

Supreme Court of Georgia Reinstates 6-Week Abortion Law

BakerHostetler on

On Nov. 23, the Supreme Court of Georgia reinstated the state’s ban on abortions after the detection of a fetal heartbeat. The Supreme Court of Georgia issued a one-page order granting the State of Georgia’s Emergency...more

BakerHostetler

Georgia 6-Week Abortion Law Is Void Ab Initio

BakerHostetler on

Key Takeaways - ..On Nov. 15, The Superior Court of Fulton County declared sections of Georgia’s 6-week abortion ban void and unenforceable. ..The Court held that because the ban was unconstitutional at the time it...more

Farrell Fritz, P.C.

Magic Words Still Matter, and Equitable Defenses Can’t Save a “Void” Transfer

Farrell Fritz, P.C. on

New York’s default rules regarding LLC members’ rights to transfer their interests appear in sections 603 and 604 of the LLC Law. Section 603 provides that a membership interest is fully assignable, but the assignee does not...more

King & Spalding

New York Court Holds that Violation of Criminal Usury Law May Render Loan Agreement Void ab initio

King & Spalding on

On March 15, 2022, the U.S. Court of Appeals for the Second Circuit vacated a district court’s denial of a borrower’s motion to dismiss lender claims. Applying the New York Court of Appeals’ guidance from certified questions,...more

Hudson Cook, LLP

CFPB Announces Broad Military Lending Act Compliance Sweep

Hudson Cook, LLP on

On December 4, 2020, the Consumer Financial Protection Bureau announced the filing of a lawsuit against an online lender for allegedly violating the Military Lending Act ("MLA"). The CFPB's complaint alleges that the lender...more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent MFW-Related Developments in Delaware Courts

In 2014, the Delaware Supreme Court’s landmark Kahn v. M&F Worldwide Corp.1 (MFW) decision established that the deferential business judgment standard of review could apply to controlling stockholder “squeeze-out” mergers...more

Burr & Forman

Ohio District Court Holds TCPA Unenforceable From 2015 Through 2020

Burr & Forman on

Lidenbaum v. Realgy, LLC, 2020 WL 6361915 (N.D. Ohio Oct. 29, 2020) - Pending before the Court was a class action lawsuit, contending Defendants violated the Telephone Consumer Protection Act, 47 § U.S.C. 227 (“TCPA”)....more

Cadwalader, Wickersham & Taft LLP

Delaware Court of Chancery Further Clarifies the “Ab Initio” Requirement in Finding That Discussions Between the Controlling...

In In re HomeFed Corp. Stockholder Litigation (“HomeFed”), the Delaware Court of Chancery considered on a motion to dismiss whether a squeeze-out merger by a controlling stockholder complied with the procedural framework set...more

Orrick, Herrington & Sutcliffe LLP

Northern District of Illinois Voids Policy Issued Pursuant to Nonrecourse Premium Financing Program but Allows for Return of...

On March 30, 2020, in a case captioned Sun Life Assurance Company of Canada v. Wells Fargo Bank, N.A., Judge Philip Reinhard of the United States District Court for the Northern District of Illinois issued a decision...more

Skadden, Arps, Slate, Meagher & Flom LLP

Key Developments in Delaware Corporation Law

Consistent with trends in recent years, in 2019 Delaware corporation law largely was shaped by post-closing suits for money damages against directors who had approved mergers and acquisitions. Two Delaware Supreme Court...more

Cozen O'Connor

New Jersey Supreme Court Rules Stranger-Originated Life Insurance Is Illegal and Void

Cozen O'Connor on

The New Jersey Supreme Court recently condemned stranger-originated life insurance (“STOLI”) transactions as void ab initio human life wagers in a case that the life insurance and life settlement industries watched closely....more

Carlton Fields

District Court Grants Motion to Compel Arbitration, Finding Arbitration Provision Not Severable From Allegedly Void Contract

Carlton Fields on

A Pennsylvania federal district court granted a motion to compel arbitration pursuant to 9 U.S.C. § 4 of the Federal Arbitration Act, over objection by the defendant on severability grounds. The defendant argued that its...more

Orrick, Herrington & Sutcliffe LLP

New Jersey Supreme Court Rules on Insurable Interest and Return of Premiums

On June 4, 2019, in a case captioned Sun Life Assurance Company of Canada v. Wells Fargo Bank, N.A., the Supreme Court of New Jersey answered two questions certified to it by the United States Court of Appeals for the Third...more

Latham & Watkins LLP

Delaware Supreme Court Clarifies Ab Initio Requirement Under MFW

Latham & Watkins LLP on

To obtain business judgment deference, controllers must insist on MFW’s minority protections before engaging in any substantive economic or valuation discussions. The Delaware Supreme Court’s 2014 decision in Kahn v. M&F...more

White & Case LLP

Peak performance: US M&A in 2018: Deal changing decisions from Delaware

White & Case LLP on

In the second half of 2018, the Delaware courts once again produced decisions that will guide M&A transactions in the future. Three cases affecting US M&A stood out in 2018....more

Skadden, Arps, Slate, Meagher & Flom LLP

From the Get-Go: Interpreting MFW’s Ab Initio Requirement

The Delaware Supreme Court’s seminal decision in Kahn v. M&F Worldwide Corporation (MFW) offers a pathway for having challenges to controlling stockholder “squeeze-out” mergers reviewed under the highly deferential business...more

Cadwalader, Wickersham & Taft LLP

M&A Update: Delaware Supreme Court Clarifies the “Ab Initio” Requirement for Business Judgment Review of Controlling Stockholder...

In Flood v. Synutra Int’l Inc., the Delaware Supreme Court clarified its holding in Kahn v. M&F Worldwide Corp. (“MFW”). ...more

Carlton Fields

Federal Court In Puerto Rico Voids Marine Insurance Policy Based Upon Misrepresentation In Insurance Application

Carlton Fields on

QBE Seguros brought a successful action declaring a marine insurance policy was void ab initio under the doctrine of uberrimae fidei and the breach of the warranty of truthfulness in the application for insurance....more

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