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Bank of America settlement faces challenge
Business Law Info |
2011/07/06 05:22
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Bank of America's $8.5 billion settlement with investors over poor-quality mortgage bonds is facing a new challenge.
On Tuesday, a group of bond investors calling themselves Walnut Place said they objected to the terms of the settlement. In a filing with the New York Supreme Court, the investors said they wanted to be excluded from the settlement that was struck after negotiations between the bank and 22 institutional investors such as BlackRock Inc., the Federal Reserve Bank, and Pimco. The settlement was meant to cover a broader group of investors being represented by a trustee.
The Walnut Place group said the 22 investors were self-appointed and didn't represent or solicit the views of the broader group of bondholders. The group also said the talks were held in secret.
A Bank of America spokesman Lawrence Grayson said in a statement that the conversations between the bank and investors were publicly disclosed and were far from secretive. "The settlement agreement was designed to give certificate holders, like those behind the Walnut Place entities, an opportunity to have any objections heard," the statement read. |
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Bill revision could mean money for NJ drug company
Court Feed News |
2011/07/05 15:12
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A billion-dollar "technical revision" added to a patent bill passed by the House last week could provide huge financial benefits to one pharmaceutical company and a law firm.
On the surface, the barely noticed amendment simply clarifies a process by which the Food and Drug Administration approves a patent for a brand-name drug, and gives the manufacturer 60 days to apply for an extension with the U.S. Patent and Trade Office.
In reality, the measure could give a New Jersey drugmaker, The Medicines Co., 2½ more years of patent protection for its lucrative blood thinner Angiomax. It would also save the law firm WilmerHale $214 million it would owe the drug company under a malpractice lawsuit if a generic alternative is sold in the United States before June 15, 2015.
The amendment barely won House approval and it is not a part of the Senate version of the patent system overhaul bill, so it is questionable whether it will ever become law. The amendment would write into law a court decision in favor of the drug company and would pre-empt any appeal.
It shows how, hidden behind the lines of obtuse legislative language, huge fortunes can be at stake, sometimes for specific companies. |
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Borrowers sue over apparent loan mod mishaps
Lawyer Blog News |
2011/07/05 14:11
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It seemed Maria Campusano's financial problems were behind her when the mortgage on her Victorian home in a Massachusetts mill town was chopped by hundreds of dollars a month.
She soon learned that her troubles had just begun.
Weeks after making her first payment under the new rate, the school district staffer began receiving past-due notices, documents showing wildly inaccurate loan balances and letters threatening foreclosure. She now fears she'll lose her home.
"How can they take away what I have worked so hard for?" Campusano said.
Campusano is one of two named plaintiffs in a proposed class-action lawsuit alleging breach of contract by Bank of America NA and subsidiary BAC Home Loans Servicing LP.
The suit, which was filed in Los Angeles federal court because BAC is located in nearby Calabasas, is among a growing number of legal complaints accusing banks of disregarding what should be binding agreements to reduce the monthly mortgage payments of troubled borrowers.
The suits involve permanent modifications through the U.S. Treasury-administered Home Affordable Modification Program, which offers incentives to loan servicers who extend modifications, as well as so-called proprietary modifications, which banks offer independently of the government guidelines.
They represent a new wave of complaints against banks that have already weathered years of criticism for their reluctance to modify loans and for foreclosing on borrowers after offering them trial modifications. |
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Justice Ginsburg's future plans closely watched
Lawyer Blog News |
2011/07/05 13:12
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Democrats and liberals have a nightmare vision of the Supreme Court's future: President Barack Obama is defeated for re-election next year and Justice Ruth Bader Ginsburg, at 78 the oldest justice, soon finds her health will not allow her to continue on the bench.
The new Republican president appoints Ginsburg's successor, cementing conservative domination of the court, and soon the justices roll back decisions in favor of abortion rights and affirmative action.
But Ginsburg could retire now and allow Obama to name a like-minded successor whose confirmation would be in the hands of a Democratic-controlled Senate. "She has in her power the ability to prevent a real shift in the balance of power on the court," said Erwin Chemerinsky, dean of the University of California at Irvine law school. "On the other hand, there's the personal. How do you decide to leave the United States Supreme Court?"
For now, Ginsburg's answer is, you don't.
There are few more indelicate questions to put to a Supreme Court justice, but Ginsburg has said gracefully, and with apparent good humor, that the president should not expect a retirement letter before 2015.
She will turn 82 that year, the same age Justice Louis Brandeis was when he left the court in 1939. Ginsburg, who is Jewish, has said she wants to emulate the court's first Jewish justice.
While declining an interview on the topic, Ginsburg pointed in a note to The Associated Press to another marker she has laid down, that she is awaiting the end of a traveling art exhibition that includes a painting that usually hangs in her office by the German emigre Josef Albers. |
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Ga. court says store can be liable for beer sale
Legal Career News |
2011/07/05 11:12
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The Georgia Supreme Court overturned a lower court ruling and found a convenience store can be held liable for a fatal highway accident that took place after a driver purchased a 12-pack of beer.
The court ruled 6-1 Tuesday that Exprezit! Stores 98-Georgia can be held liable for selling beer to a man named Billy Grundell, who was noticeably intoxicated when he made the purchase. His vehicle later struck a van, killing him and five other people.
The families of those injured sued, but the trial court and Georgia Court of Appeals awarded summary judgment to the store on grounds the beer was not sold for consumption on premises. The Supreme Court disagreed.
Attorneys for the store argued that clerks couldn't know Grundell would soon be driving. |
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Law school enrollment in Missouri lags as legal jobs dry up
Headline News |
2011/07/04 10:49
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Missouri law schools expect fewer students in the fall after several years of significant enrollment growth both regionally and nationally.
The St. Louis Post-Dispatch reported this week that the University of Missouri's flagship campus in Columbia has received 17 percent fewer applications this year. Applications at Washington University dropped 13.3 percent, while St. Louis University is seeing a nearly 20 percent decline.
A national group that tracks law school enrollment says that applications are down more than 10 percent overall compared to this time last year.
The economic downturn means that law school graduates can no longer count on landing lucrative jobs straight out of college. The declining interest comes one year after many schools reported record enrollment.
"The stories about the legal market have certainly dampened some people's enthusiasm," said Paul Pless, assistant dean for admissions and financial aid at the University of Illinois at Urbana-Champaign College of Law. Applications at Illinois are down nearly 8 percent so far this year.
Melissa Hamilton, 35, is a recent University of Missouri law school graduate still looking for a job. She's applied for a few government positions but is waiting until she passes the bar exam before making a stronger push. She's also looking into jobs where she could also use her master's degree in social work. |
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