Another in a recent wave of California cases has hit the nail on the head, holding that the trustee can be held liable for debts, but not the trust itself. The reason is elementary – a trust is a relationship, not an entity. This rule has roots that run back hundreds of years. It explains …
Continue reading “Trustee Can be Held Liable for Debts As Alter Ego of Limited Liability Company”
A new decision has made an important change concerning he liability of real estate brokers in the context of a bankruptcy. Specifically, the decision in In re Honkanen, 2011 DJDAR 3358 (9th Cir. Bankruptcy Appellate Panel March 4, 2011) holds that a real estate broker can obtain a discharge from a state court finding of …
The decision in Smith v. Home Loan Funding, Inc. (Feb. 25, 2011) 2011 DJDAR 2968 may have satisfied a “feel good” impulse at the Court of Appeal. However, it seems that Justice Gilbert jumped the rails when he affirmed the award of damages. Even more, he awarded attorney’s fees when there was no contract between …
Continue reading “Smith v. Home Loan Funding – An Excessive Remedy Against Mortgage Broker”
The decision in Bonfigli v. Strachan (Feb. 24, 2011) 2011 DJDAR 2893 is a reminder not to press for advantage when using a power of attorney. The defendant was a developer who used a power of attorney to reconfigure two parcels so that he got to keep the land, but did not have to pay …
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The opinion in In re Marriage of Fossum (Feb. 1, 2011) 2011 DJDAR 1629 focused on the characterization of a house that was owned by Edward and Sandra Fossum. Like many couples, title was taken in the name of one spouse to obtain better credit terms. The court found that the house was community property, …
For anyone dealing with distressed mortgages, the story about the lender who said it would “work” with a defaulted loan, only to abruptly proceed to foreclosure, is all-to-familiar. A legal challenge against the lender must be based on existing legal precedent. The January 27, 2011 decision in Aceves v. U.S. Bank, N.A. gives hope to …
The recent decision in Kucker v. Kucker focused on a narrow issue. Is a general assignment of assets valid for transfer of stock into an estate planning trust? The court answered in the affirmative, but not before confronting the statute of frauds. And not before stating an important distinction regarding real property. The facts were …
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In a recent and closely reasoned opinion, the 5th District Court of Appeal from Fresno held that a claim of fraud could go to trial, even if the alleged fraud was controverted by the language of the written agreement between the parties. There are points in the opinion for discussion, but let’s start with the …
In Ahcom, Ltd. v. Smeding, 2010 DJDAR 16125 (9th Cir. Oct. 21, 2010), the Ninth Circuit Court of Appeal considered when alter ego liability could be imposed on corporate shareholders. Applying California law in a bankruptcy context, the court provided contours to alter ego liability. The issue in Ahcom was whether “a creditor of a …
In a recent bankruptcy case, the Ninth Circuit held that a transfer to a trust could be set aside years after the transfer was made. In In re Schwarzkopf (9th Cir Nov. 23, 2010) ___ F.3d ___, the court held that, because the transfer was a fraud on creditors at the time it was made, …
Continue reading “Debtor’s Fraudulent Transfer of Property Set Aside Years After Trust Was Formed”