The Fourth Circuit vacated and remanded a bankruptcy court ruling that had held Gary D. LeClair, a founding member of the now-defunct law firm LeClairRyan PLLC, liable for tax obligations due to his status as a firm member at the time of its bankruptcy filing.
Several small businesses had entered into two separate agreements with Bank of America—one for deposit accounts (which contained an arbitration clause) and one for Paycheck Protection Program (PPP) loans (which did not). When the businesses sued over handling of the PPP loans by Bank of America,it moved to compel arbitration based on the deposit agreements.
The Plaintiffs brought a class action lawsuit against Rocket Mortgage (formerly Quicken Loans) and its affiliate, Amrock, LLC (formerly Title Source, Inc.), regarding mortgage appraisals used in refinancing transactions, alleging that the defendants influenced home appraisals by transmitting homeowners' estimated property values to appraisers, thereby rendering the appraisals “worthless” and violating West Virginia consumer protection laws.
BK Racing, LLC filed for Chapter 11 bankruptcy in 2018. Matthew W. Smith, appointed as trustee and later sole manager of the reorganized debtor, initiated adversary proceedings to recover allegedly fraudulent transfers and address related claims.
The complaint included claims such as fraudulent transfers, civil conspiracy, conversion, stay violations, and turnover of property.
The Fourth Circuit Court of Appeals affirmed the district court’s dismissal of Mark and Natasha Wesker’s claims against Bank of America. The Weskers alleged the bank mishandled their application for a modification of their home equity line of credit, leading to financial harm and damage to their credit score.
The Weskers asserted the following claims against Bank of America:
