“Going to the chapel and we’re gonna get…”: Husband Hides Wedding Business Assets from Wife
A husband and wife ran a wedding chapel business in Sevier County, Tennessee. In 2004, they added an overnight cabin rental business and ran them both under the name Mountain Mist Cabins & Weddings. After things soured between them, but before the divorce, the husband claimed that he abandoned the business.
By “Hell or High Water” Obligations of Lessees in Finance Leases
In Walker v. Frontier Leasing Corp., 2010 WL 1221413 (Tenn. Ct. App. Mar. 30, 2010), the Court held that it could not rescind a finance lease based solely on fraud on the part of the supplier, even if the supplier fraudulently induced the lessee to sign the Finance Lease, because lessees must perform finance leases “come hell or high water.” This ruling was based on “unique law applicable to finance leases,” as defined in T.C.A. § 47-2A-103(g). This result encourages entities to acquire and finance machinery and equipment without worrying that the lessee will be able to stop paying and blame it on the equipment.
Diversity Jurisdiction and Fraudulent Joinder
Jill Mertz, a citizen of Tennessee, brought suit to recover damages resulting from the wrongful death of her mother Dorothy Collins. Ms. Collins was a resident at a nursing home operated by defendant Alterra Healthcare Corporation. Ms. Mertz filed her initial action against Alterra in the Circuit Court for Blount County, Tennessee. Defendant Alterra removed the case to the Federal Court for the Eastern District of Tennessee based upon diversity jurisdiction pursuant to 28 U.S.C. § 1332(a)(1). Subsequently, Ms. Mertz discovered the identity of previously unidentified parties who were involved in the conduct that formed the basis for the complaint, and she filed a motion to amend her complaint to add the new defendants.
Non-dischargeability and Intent to Defraud
The 6th Circuit Bankruptcy Appellate Panel has addressed what constitutes the intent to defraud for purposes of establishing non-dischargeability under Section 523(a)(4) of the Bankruptcy Code. The president of a car dealership appealed the determination that a $2.4 million debt owed to his lender was non-dischargeable as embezzlement.
