Arizona Law Regarding Business Disputes
More Lawsuits to Come
Posted on December 3, 2008 in Arizona Law Regarding Business and Real EstateIf you could invest in a law firm, this would be a good time. According to the WSJ, the number of consumers with delinquent mortgages is poised to almost double by the end of next year, hitting its highest level in at least 16 years, according to a leading credit bureau.
TransUnion LLC, which analyzed about 27 million consumer records in its database, predicted that the proportion of consumers with mortgages that are 60 days or more past-due will hit 7.17% in the fourth quarter of 2009.
That would be the highest level reached since the Chicago credit bureau — which is releasing the data on Tuesday — started keeping track. I wonder how many of these defaults are occurring because the lenders have told the shaky borrowers that the must miss payments before they can rework the loan. As my kids say, this is just great. There is little doubt this will lead to many more Arizona lawsuits.
Add CommentIn an Arizona Lawsuit? Keep Good Records or Risk Big Time Losses
Posted on November 26, 2008 in Arizona Law Regarding Business and Real EstateIn a recent Arizona case that involved real estate, an entrepreneur named Caneva owned several businesses, mobile home parks and even an airplane. This guy was a classic Arizona developer. At the law firm of William A. Miller, PLLC, we have seen scores of cases like this. Anyway, in too much debt, he chose to file for Chapter 7 dissolution and discharge. He had every right to do so. While in Court, he amended his bankruptcy schedules. As noted on the record, each schedule was less and less clear as to what he owned.
Finally, his last amendment said his interest in the businesses was unclear or unknown. In a courtroom cross-examination of the status of his finances, the guy admitted that he failed to keep records for his businesses. I think the presumption was he was hiding something. Arizona judges do not like this at all.
In Arizona and virtually every other State, you must keep business financial records and electronic evidence in order to obtain a discharge in bankruptcy. One of Caneva’s creditors objected to the Court’s ability to discharge his debts due to his lack of financial records. The Court denied Caneva’s request for a discharge based on his lack of records, ruling that the court couldn’t tell what to discharge, and he appealed. He lost. Arizona lawyers and those who litigate often say, “the cover up is worse than the crime.”
Federal law allows discharges, but not if the debtor fails to preserve records “from which the debtor’s financial condition or business transactions might be ascertained.” Sufficient written evidence, as opposed to absolute completeness, must be presented.
Caneva argued he produced a substantial quantity of documents, but he admitted he did not keep records crucial to determine the extent of Caneva’s interest in his businesses. Since his creditors were not able to accurately understand Caneva’s financial condition, the court did not have to discharge his debts. In Maricopa County you must also keep or have retention policies regarding electronic records such as emails and computer programs.
I have heard of Maricopa County Judges tossing out suits for failure to keep and then produce good business records. The same goes for offering a defense. Keep good records or you may lose your chance at a case-winning argument.
Add CommentArizona Loan Workouts
Posted on November 20, 2008 in Arizona Law Regarding Business and Real Estate
According to the Wall Street Journal, some mortgage companies are slashing the amounts that borrowers owe, deciding that permanent cuts in loan balances may pay off by helping teetering borrowers avoid foreclosure.
There are few lawyers in Arizona who have negotiated more loan workouts than Bill Miller. The most important factors are: (1) Honesty in the original loan applications; (2) The story (why you cannot pay); and (3) Why a workout is better than a foreclosure. If you can satisfy these three factors, a workout is possible, but full disclosure of current assets and your updated financials must be tendered.
Add CommentNew Law in Business and Real Estate in Arizona
Posted on November 18, 2008 in Arizona Law Regarding Business and Real EstateQuintero v. Rodgers (11/18/2008): Arizona Court of Appeals Division One Holds That A.R.S. § 14-3110 Precludes Damages for Loss of Enjoyment of Life But Does Not Preclude Recovery of Punitive Damages. Please call William A. Miller Phoenix, Arizona Lawyer at 602-319-6899 with questions. After filing a lawsuit against the defendant, Matthew Rodgers, for injuries suffered…
Read MoreArizona Litigation Trends
Posted on November 16, 2008 in Arizona Law Regarding Business and Real EstateSo what’s up in Arizona and national litigation? Everyone is suing everyone. We opened four new files last week at the law firm of William A. Miller in Scottsdale, Arizona. In its latest annual 2008 Litigation Trends Survey, the international law firm of Fulbright & Jaworski L.L.P. predicts a rise in corporate litigation. “This year’s…
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