Month: December 2015

Bankr. E.D.N.C.: In re Bate Land & Timber, L.L.C.- Equitable Reduction in Attorney’s Fees

Summary:

In a long-running case, of which this is the fourth opinion from the court, the Debtor and Bankruptcy administrator objected to the attorney’s fees sought by Bate Land Company (“BLC”). The Court held that BLC was an over secured creditor under 11 U.S.C. § 506(b).

The Debtor, however, first contended that the Note provided for attorney’s fees to BLC only in the event of a default and that, since the bankruptcy was filed during the 10-day grace period after the initial missed payment, there had been not default. The Court, however, held that the contract “specifically refers to the failure to make a payment as a default, and does not condition recovery of attorneys’ fees on the expiration of the cure period or a declaration of default.… Read More

Tagged with: , ,

N.C. Ct. of Appeals: TM Construction, Inc. v. Marco Contractors, Inc.- Untimely Demand for Arbitration

Summary:

In a dispute between construction contractors, the Court of Appeals affirmed the trial court order denying a demand for arbitration as untimely. Holding normally a trial court should determine the validity of an arbitration agreement (namely that a valid agreement exists and that the dispute is within the scope of the agreement), here the trial court instead found that even assuming arguendo that there was an enforceable arbitration provision, the demand was untimely. While this placed “the cart before the horse”, the Court of Appeals held that such determination was appropriate. Recognizing that a party can implicitly waive a contractual right to arbitrate “if by its delay or by actions it takes which are inconsistent with arbitration, another party to the contract [would be] prejudiced by [an] order compelling arbitration.” Cyclone Roofing Co., Inc.… Read More

Tagged with:
Top