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By Ed Boltz, 26 March, 2013

4th Circuit: Rogers v. River Hills- Extrinsic Evidence cannot be Used to Supplement Property Description

Summary: The District Court determined that the contract relating to the easement did not sufficiently describe the portion or parcel of the servient estate to be affected by the easement. On appeal, Rogers argued that the property description was sufficient because River Hills owned only one parcel of land at the time the writing was executed.
By Ed Boltz, 25 March, 2013

4th Circuit: McCauley v. Home Loan Investment Bank- Home Owner’s Loan Act Preemption of State Law; Pleading Fraud Allegation

Summary: McCauley raised state law claims against Home Loan Investment Bank (“Home Loan”) for unconscionability and fraud, due to multiple factors, including a hurried closing, the inducement by inflated appraisal, the disparity between the size of the loan and the value of the home, and an “exploding” ARM. Home Loan moved to dismiss on the basis that the Home Owner’s Loan Act (“HOLA”) and related regulations at 12 C.F.R.
By Ed Boltz, 21 March, 2013

4th Circuit: United Marketing Solutions v. Fowler- Settlement Agreement was not Contract for Sale of Judgment

Summary: United Marketing Solutions (UMS) obtained a judgment against the Fowlers for $106,076.82. Subsequently, Rees Associates obtained a judgment against UMS for $172,194.94. Rees then initiated garnishment proceeding against the Fowlers, but then entered into a Settlement and Release with the Fowlers which called for the Fowlers to pay Rees “the sum of $ ___ upon execution of this Agreement in full and complete satisfaction of the Garnishment.
By Ed Boltz, 12 March, 2013

4th Circuit: Campbell v. Hanover Insurance Co.- Earmarking and New Value Defenses to Preferences

Summary: ESA Environmental Specialists, Inc. (ESA) was an engineering firm that had various constructions projects under contract with the federal government. As such, ESA was required to obtain surety bonds to secured completion of the contracts and pay vendors and subcontractors. ESA originally obtained eight surety bonds from Hanover in 2006. In April 2007, ESA borrowed $12.2 million from Prospect Capital to fund operations. Shortly, thereafter, ESA sought seven additional surety bonds from Hanover.
By Ed Boltz, 6 February, 2013

4th Circuit: Sun Trust Mortgage, Inc. v. United Guaranty Residential Insurance Company of North Carolina- Sanction for Spoliation of Evidence

Summary: In a dispute between Sun Trust Mortgage and United Guaranty, which insured against payment defaults on certain loans products, one of Sun Trust’s employees was found to have deliberately altered e-mails to manufacture documentary support for Sun Trust’s position in the dispute. The district court ordered Sun Trust to pay United Guaranty’s attorneys’ fees and costs related to the sanctions motion that was brought by United Guaranty, which had additionally sought dismissal of the entire suit. Relying on United States v. Shaffer Equip. Co., 11 F.3d 450, 462 (4th Cir.
By Ed Boltz, 18 January, 2013

4th Circuit: Klein v. Household Realty- Arbitration Rider did not Render Rescission Notice invalid under TILA

Summary: The Court of Appeals held that arbitration rider in mortgage refinance agreement did not render consumer's right to rescind credit transaction unclear or non-conspicuous under TILA. For a copy of the opinion, please see: Klein v. Household Realty- Arbitration Rider did not Render Rescission Notice invalid under TILA.pdf
By Ed Boltz, 18 January, 2013

4th Circuit: Ross v. R.A. North Development (In re Total Realty Management) - Liability under the Interstate Land Sales Act

Summary: The Chapter 7 Trustee alleged that the Debtor, Total Realty Management (“TRM”), with the assistance and knowledge of R.A. North and its affiliates sold property in North and South Carolina at real estate seminars at inflated prices, falsely representing that the properties were owned by TRM, when they were , in fact owned by R.A. North. The Trustee sued R.A. North seeking statutory contribution from R.A.
By Ed Boltz, 10 October, 2012

4th Circuit: McLean v. Ray- Bona Fide Error Defense under FDCPA for Debt Collection Attorney allows reliance on Creditor’s Statement of Amount Owed

Summary: Ms. McLean was first admitted to ManorCare, a nursing home, in July 2006, signing a contract (through her son, James McLean, who held her Power of Attorney) agreeing to all costs, including attorneys’ fees, for collection of unpaid amounts. The contract provided that it would remain in effect if she was discharged but re-admitted within 15 days. In 2007, following her discharged from the nursing home, Mr. Ray sued Ms. McLean on behalf of ManorCare, with the matter being resolved by the parties. Ms.
By Ed Boltz, 10 October, 2012

4th Circuit: Larrabee v. Bank of America- Iqbal/Twombley Pleading of Truth In Lending Rescission Action

Summary: The Court of Appeals held that the Plaintiff had failed to state a plausible claim for relief under the TILA because her proposed reading of the notice disclosing the number and due dates of payments due under that transaction is not objectively reasonable. Further, because the disclosure to the Plaintiff of her right to cancel the 2007 credit transaction contained all of the information required by the TILA, 15 U.S.C.A. § 1635(a)-(b), and Regulation Z, 12 C.F.R.
By Ed Boltz, 9 October, 2012

4th Circuit: Marachich v. Spears- Use of DMV Information for Solicitation of Potential Clients

Summary: Through requests submitted to the South Carolina Department of Motor Vehicles (DMV) under the state Freedom of Information Act, S.C. Code Ann. §§ 30-4-10 to -165 (FOIA), Michael E. Spears, Esq., Gedney M. Howe, III, Esq., Richard A. Harpootlian, Esq., and A. Camden Lewis, Esq.

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