Mr. Smith Goes to Cincinnati and Loses an Appeal Before the Sixth Circuit for Failure to Cooperate in Discovery
Mr. and Mrs. Smith took out an insurance policy on a car and three pieces of jewelry. Thirteen days later, they claimed the jewelry was stolen during a car accident. After finding out, among other things, that the Smiths could not prove ownership of the jewelry, that the car “accident” could not have happened as the Smiths described, and that Mr. Smith had filed an identical claim a few years earlier, the insurance company denied the claim based on fraud. The Smiths sued.
By Superheroes, Supervillains, and the Law
If you ever wonder whether lawyers have a since of humor, or whether Superman’s heat vision is protected by the Second Amendment, you can check out a blog called Law and the Multiverse at http://lawandthemultiverse.com/. This is especially good if you like your humor dry.
A Personal Guaranty Must Be Signed in Individual Capacity to Be Enforceable Against an Individual
A Tennessee Court has once again reaffirmed the majority view in the country that signature of a document in one’s capacity as an officer of a company does not bind one individually. In the case of 84 Lumber Co. v. Smith, 2010 WL 4272739 (Tenn. Ct. App. Oct. 28, 2010), the Court held that the defendant/owner of the company who signed a commercial credit application as “President” was not personally liable despite language in the agreement that stated as follows:
BY SIGNING BELOW I HEREBY CERTIFY THAT I AM THE OWNER, GENERAL PARTNER OR PRESIDENT OF THE ABOVE BUSINESS, AND I DO UNCONDITIONALLY AND IRREVOCABLY PERSONALLY GUARANTEE THIS CREDIT ACCOUNT AND PAYMENTS OF ANY AND ALL AMOUNTS DUE BY THE ABOVE BUSINESS.
Be Prepared to Fully Disclose in Bankruptcy or Suffer the Consequences
A pair of recent cases remind one that bankruptcy is no place to be if you have something to hide about your financial life. The key requirement for relief in a bankruptcy case is full disclosure. When that disclosure is lacking, a debtor suffers the consequences.
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