Can a bankruptcy trustee prove a violation of N.C. Gen. Stat. § 75-1.1 based on business strategies that forced a debtor into bankruptcy? The U.S. Bankruptcy Court for the Eastern District of North Carolina recently addressed this question in In re American Ambulette & Ambulette Service, Inc. The Debtors’ Corporate Parents […]
A recent decision reminds us that North Carolina’s bankruptcy courts often rule on claims under N.C. Gen. Stat. § 75-1.1. In re NC & VA Warranty Co. was an adversary proceeding in the bankruptcy of a warranty company. The company’s bankruptcy trustee tried to amend her complaint to assert breach-of-contract […]
Today we return to the vexing relationship between N.C. Gen. Stat. § 75-1.1 and the North Carolina Debt Collection Practices Act. The Debt Collection Act says that its “specific and general provisions . . . shall exclusively constitute the unfair or deceptive acts or practices proscribed by G.S. 75-1.1 in […]
Courts almost always treat fraud claims as per se (automatic) violations of N.C. Gen. Stat. § 75-1.1. Does that mean that fraudulent transfers of assets, likewise, automatically support recovery under section 75-1.1? A recent decision of the North Carolina Business Court, KRG New Hill Place, LLC v. Springs Investors, LLC, allowed a […]