Case Summaries

Banking Law

[06/24] DDJ Mgmt., LLC v. Rhone Group L.L.C.
In an action claiming that defendants presented plaintiffs with corporate financial statements that were false and misleading, the appellate division's modification of the trial court's order dismissing plaintiffs' fraud claim is reversed where: 1) when a plaintiff has taken reasonable steps to protect itself against deception, it should not be denied recovery merely because hindsight suggested that it might have been possible to detect the fraud when it occurred; and 2) plaintiffs in this action for fraud have alleged facts from which a jury could find that they were justified in relying on the representations defendants made to them.

[06/22] Jay E. Hayden Found. v. First Neighbor Bank, NA
In a RICO suit against a bank, two law firms, and affiliated individuals, grant of defendants' motion to dismiss on the ground that the complaint itself showed that plaintiffs had missed the four-year deadline governing RICO suits is affirmed as, by the summer of 2003 at the latest, the plaintiffs knew that a lawyer had looted the estate and that bank's employees were trying to prevent further investigation of the lawyer.

[06/22] Export-Import Bank of the U.S. v. Asia Pulp & Paper Co.
In an action to collect a $144 million judgment against defendants pursuant to the Federal Debt Collection Procedures Act (FDCPA), the district court's order quashing plaintiff's writs of garnishment is affirmed where an electronic funds transfer (EFT) temporarily in the possession of an intermediary bank in New York may not be garnished under the FDCPA to satisfy judgment debts owed by the originator or intended beneficiary of that EFT.

More...

Landlord Tenant

[06/23] Rectrix Aerodrome Ctrs., Inc. v. Barnstable Mun. Airport Comm'n
In plaintiff's suit against an airport commission and individual defendants, claiming that it was prevented from competing with defendant in the sale of jet fuel, district court's grant of summary judgment in favor of the defendants is affirmed where: 1) plaintiff's fraud claim fails as plaintiff was a commercial tenant of the airport and, given the self-service standards and lease terms, had no right and no reasonable expectation of being able to sell jet fuel at the airport; 2) the antitrust claim is barred by the state action doctrine given the Massachusetts statute; and 3) plaintiff's equal protection claim under section 1983 fails as no private entity at the airport has the privilege sought by plaintiff.

[06/21] Thrifty Payless, Inc. v. Mariners Mile Gateway, LLC
In a tenant's suit against the landlord over a lease for new commercial property, trial court's grant of defendant's motion for nonsuit and expert witness fees is affirmed where: 1) trial court's decision granting the nonsuit was proper as a matter of law; and 2) trial court did not err by allowing defendant to recover its expert witness fees pursuant to the lease.

[06/15] Embassy LLC v. City of Santa Monica
In a petition for writ of mandate and complaint for declaratory relief, seeking an order compelling the City of Santa Monica to permit the removal of petitioners' units from the rental housing market and a declaration that the Ellis Act waiver in the parties' agreement was unenforceable, the denial of the petition is reversed where Government Code section 7060.1 prohibited public entities from enforcing contractual Ellis Act waivers in all circumstances except those specified in the statute. A contract between appellants and respondents-City of Santa Monica and its Rent Control Board (collectively, the City) included appellants' waiver of their Ellis Act rights as to 19 tenant units in their apartment hotel.

More...