Tag: constructive notice

Bankr. W.D.N.C.: In re Carolina Internet, Ltd.- Violation of Discharge; Due Process Requirements for Notice

Summary:

Carolina Internet had an oral agreement to pay O’Dell 6.5% of its sales from its largest customer, believing that O’Dell could take that account away. When Carolina Internet filed Chapter 11, however, it did not list O’Dell as a creditor. That failure notwithstanding, O’Dell was aware of the bankruptcy, both as it was being planned and after it was filed. After filing, Carolina Internet continued to pay O’Dell, unlike other unsecured creditors, and belatedly included a budget item for $22,124.66 a month in “sales commissions”, that were discovered by the Creditor’s Committee to have been paid to O’Dell as a “kickback.” The Creditor’s Committee insisted that payments to O’Dell be returned and discontinued, but Carolina Internet, fearing the loss of its primary customer, sought to assume what it alleged was an oral executory contract with O’Dell.… Read More

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N.C. Court of Appeals: REO Properties v. Smith- Constructive Notice of Lis Pendens

Summary:

In 1986, the Smiths acquired title to Lot #184 of Crestview Subdivision, 106 Crestview Terrace, in Davidson County, Thomasville, North Carolina (“the property”) and recorded the Deed. The Smiths executed a promissory note in the principal amount of $96,000 (“the Note”) to New Century Mortgage Corporation (“New Century”) secured by a Deed of Trust on the property that was recorded on 16 December 2002. The Deed of Trust included the correct address of the property as 106 Crestview Terrace, Thomasville, North Carolina, the legal description attached to the Deed of Trust did not, however, fully and completely describe the property.… Read More

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