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Category: Creditors Rights, Lender Liability, and Bankruptcy

February 12, 2019 in 75-1.1 Exemptions by

No Hot-Dogging: The Intersection of Section 75-1.1 and Federal Franchise Law

This post examines two new decisions that apply N.C. Gen. Stat. § 75-1.1 to a specific factual context: the relationship between franchisors and franchisees. The decisions—Trident Atlanta, LLC v. Charlie Graingers Franchising, LLC and Sanghrajka v. Family Fare, LLC—parallel one another in important ways, but reach different results. This post summarizes […]

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August 14, 2018 in 75-1.1 Exemptions by

When do Creditors of a Bankrupt Corporation Lack Standing to Bring an Unfair and Deceptive Trade Practice Claim?

Lawsuits and collection actions against a corporation are automatically stayed when the corporation files for bankruptcy, generally speaking. In order to avoid the automatic stay, creditors may bring claims against the directors and/or officers of the bankrupt corporation rather than against the corporation itself. Depending on the nature of the […]

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February 13, 2018 in 75-1.1 Exemptions by

Can a Lender’s “Robo-Signing” of a Loan Document be the Basis for an Unfair or Deceptive Trade Practice Claim?

The financial crisis of 2008 and the subsequent wave of mortgage foreclosures brought to light certain lenders’ practices of “Robo-Signing.” Robo-Signing was a term coined to refer to bank employees’ alleged practice of “robotically” signing mortgage loan documents without reviewing them. A recent decision from the Middle District of North […]

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