1st U.S. Circuit Court Of Appeals Case Summaries
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Where a plaintiff purports to represent a class of injured persons in a suit brought against a defendant car manufacturer pursuant to Puerto Rico law, an order dismissing the complaint must be affirmed on the ground that no private right of action exists under the Puerto Rico Antitrust Act. Diaz-Ramos v. Hyundai Motor Co., et al. (Lawyers Weekly No. 01-253-07) (10 pages) (Lipez, J.) (1st Circuit) Appealed from the U.S. District Court for the District of Puerto Rico (Docket No. 06-2026) (Aug. 30, 2007). Bankruptcy Prepayment penalty Where a lender sought to enforce a prepayment penalty against a solvent debtor, the lower court erred by disallowing the penalty claim on reasonableness grounds. “This bankruptcy dispute presents a question of first impression in this circuit concerning a commercial lender’s right to receive a bargained-for prepayment penalty from a solvent debtor. … “[Creditor] UPS [Capital Business Credit] argues that section 506(b)’s reasonableness standard is not relevant to the question of whether an oversecured creditor is entitled to collect a contractually-based prepayment penalty from a solvent debtor. It directs us to section 502 of the Code and to a wealth of case law holding that if fees, costs, or other charges are deemed unreasonable, an oversecured creditor nonetheless may collect them as unsecured debt (subject to the provisions of section 502). In the alternative, it argues that the lower courts’ models of reasonableness are unsuited to the realities of modern commercial lending More : accessmylibrary.com |