Legal News

Case Summaries

Commercial Law

[07/02] Deckers Corp. v. US
In a suit contesting the proper classification of three styles of sports sandals under the Harmonized Tariff Schedule of the United States, a decision holding that the merchandise was properly classified under subheading 6404.19.35 is affirmed where the sandals at issue have open toes and open heels, and lack the features of the named exemplars of 6406.11.80, and thus the imported goods are not classifiable under that subheading notwithstanding their claimed status as athletic footwear.

[07/02] Cavin v. Home Loan Ctr., Inc.
In a suit involving a mailer sent by defendant announcing its mortgage program and claiming that defendant violated the Fair Credit Reporting Act by failing to present plaintiffs' with a firm offer of credit, summary judgment for defendant is affirmed where: 1) the letter at issue presented a firm offer of credit, despite the absence of some material terms and the minimal number of consumers who obtained the loan; and 2) thus, defendant did not violate the FCRA.

[06/30] Waltrip v. Kimberlin
In a priority dispute between competing liens, by a judgment creditor and debtor's attorney, over settlement proceeds, judgment finding the judgment lien had priority over the attorney lien is reversed and remanded where: 1) the creditor had a lien which did not cover commercial tort claims while the settlement proceeds at issue stemmed from commercial tort claims; 2) the attorney lien was created by the retainer agreement between plaintiffs and counsel, and it was created before creditor filed a notice of lien in the pending action; and 3) the notice of lien did not relate back to prior liens, as those liens covered different property.

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Probate Trusts

[06/26] Murphy v. Murphy
A probate court judgment finding plaintiff entitled to a constructive trust over one-half interest of decedent's real and personal property existing on the date of his death is reversed on collateral estoppel grounds where: 1) prior to the decedent's death, a probate court previously issued an order on behalf of decedent, authorizing the decedent's conservator to execute a living trust and pour-over will to implement an estate plan which effectively disinherited plaintiff; and 2) a careful balance of all the relevant factors supported that principles of collateral estoppel should serve to bar plaintiff's subsequent causes of action.

[06/25] Safai v. Safai
In a case involving a dispute over whether a minor's actions triggered the "no contest clause" contained in a trust instrument, the court of appeals finds that the minor's act of signing the "minor's consent" portion of an ex parte application for appointment of guardian ad litem did not equate to "voluntarily" participating in a trust contest, an act which a minor is legally incapable of pursuing by their own volition.

[06/24] IN Funeral Directors Ins. Trust v. Benefit Actuaries, Inc.
In a suit alleging violation of fiduciary duties under ERISA and breaches of common law duties to plaintiff by providing it with bad advice and failing to recommend measures that would stave off insolvency, judgment for defendant is affirmed where: 1) plaintiff did not provide evidence that defendants promised to administer the Trust in accordance with certain state law or that defendants knew the Trust would rely on it to follow the Michigan statute; 2) plaintiff failed to show that defendant assumed a duty to provide actuarial advice; 3) defendant did not breach a duty by failing to advise trustees about the risk of raising the specific stop loss deductible and about the Trust's poor financial situation; and 4) defendant did not breach a duty by failing to recommend that the Trust maintain adequate reserves.

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Property Law & Real Estate

[07/03] Jacob v. West Bloomfield
In a suit brought under 42 U.S.C. section 1983 alleging a violation of plaintiff's Fourth Amendment rights when defendant entered plaintiff's property without a warrant to inspect the property for criminal violations of a land use ordinance, denial of summary judgment for defendant is affirmed where: 1) the purpose of the government intrusion was not merely administrative but also bore the threat of criminal sanctions; and 2) the fact that plaintiff did not endure an even more intrusive search does not obviate the Fourth Amendment's requirement that, absent exigent circumstances, officials may not conduct criminal investigations within the curtilage of a person's home without a warrant.

[07/03] MLC Automotive, LLC v. Town of Southern Pines
In a suit alleging that the rezoning of a certain piece of real estate violated plaintiff's common law vested rights in the property and its federal and state substantive due process rights, denial of defendants' Rule 60(b) motion is affirmed where: 1) defendant-town's Rule 60(b) motion was filed within ten days of the original judgment, called into question the correctness of the judgment, and is properly construed as a Rule 59(e) motion; 2) the district court did not abuse its discretion in concluding that Burford abstention was appropriate because the case involved difficult issues of state land use policy.

[07/02] Rodriguez-Rivera v. Federico Trilla Reg'l Hosp. of Carolina
In a medical malpractice case against defendant-hospital presenting the issue of whether an Asset Purchase Agreement entered between past and present owners of the hospital absolved the current owner's liability for acts or omissions by the hospital's previous owners and/or operators, the circuit court finds that the terms of the asset purchase agreement not only could, but did, absolve the present owners from liability.

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Wills & Trusts

[06/30] MICHAEL J. v. THE SUPERIOR COURT OF ORANGE COUNTY (ROGERS)
The conservator of the person and the estate of a mentally disabled person who is unable to communicate her wishes does not have the power to initiate and prosecute a petition for the dissolution of her marriage.

[03/12] E. ARMATA, INC. v. KOREA COMMERCIAL BANK OF NEW YORK
Under the Perishable Agricultural Commodities Act (PACA), a bank is not liable to the beneficiaries of a PACA trust for receipt of funds in breach of the trust where, having extended revolving overdraft privileges to a produce dealer covered by PACA, the bank routinely applied deposited PACA funds to reduce the negative balance in the produce dealer's overdrawn account.

[03/12] E. ARMATA, INC. v. KOREA COMMERCIAL BANK OF NEW YORK
Under the Perishable Agricultural Commodities Act (PACA), a bank is not liable to the beneficiaries of a PACA trust for receipt of funds in breach of the trust where, having extended revolving overdraft privileges to a produce dealer covered by PACA, the bank routinely applied deposited PACA funds to reduce the negative balance in the produce dealer's overdrawn account. (Amended opinion)

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