Ms. Morgen brought suit alleging violations of the Fair Credit Reporting Act and Student Loan Finance (“SLF”) moved for a change of venue to South Dakota based on a forum selection clause in the contract.
Ms. Morgen’s initial objection that the loan applications and promissory notes proffered by SLF had no affidavits from record keepers denied as the court held that such would be precluded as evidence in a consideration of a motion for summary judgment, but, in part because “there is no plausible contention that these documents are inauthentic,” allowed them for determination of venue.
In evaluating the forum selection clause, the court first determined whether it was mandatory or permissive, with only mandatory forum selection being binding. … Read More
Grand Dakota Partners (“GDP”) and Grand Dakota Hospitality (“GDH”) filed a Chapter 11 bankruptcy in the Western District of North Carolina, largely because its owners and management were located in Charlotte. The hotel, bar and restaurant operated by GDP and GDH are located in Dickinson, North Dakota.
Venue in North Carolina was proper under 28 U.S.C. § 1408, as Charlotte was the “principal palce of business” for the corporations, since that is where the “decision makers are located”. See The Hertz Corp. v. Friend, 559 U.S. 77, 80 (2010). That notwithstanding, the bankruptcy court then determined whether transfer of venue under 28 U.S.C.… Read More
Deluxe Cleaners originally filed Chapter 11 in the Eastern District of North Carolina, but venue was shortly thereafter transferred to the Middle District of North Carolina. A related bankruptcy, filed by the Parks (who owned Deluxe Cleaners) was filed in the Eastern District of North Carolina. Thus began a cross-district tangle.
Prior to the filing of either bankruptcy, Deluxe Cleaners and the Parks obtained a judgment against Forrest Investment Group. As part of the Deluxe Cleaners bankruptcy, assets were sold to Forrest Investment and this judgment was cancelled. The Trustee in the Deluxe Cleaners bankruptcy sought and obtained a determination by the MDNC court that all of the proceeds of this sale related to the judgment would be assigned to the estate of Deluxe Cleaners. … Read More