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 […]
Category: Creditors Rights, Lender Liability, and Bankruptcy
Today’s post continues our “traps for the unwary” series. In Bryant v. Nationstar Mortgage, LLC, the North Carolina Court of Appeals affirmed the dismissal of a claim under N.C. Gen. Stat. § 75-1.1 arising from alleged impropriety in connection with a foreclosure. In Bryant, a homeowner brought a 75-1.1 claim […]
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 […]
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 […]