• CONSUMER LAWS

United States Court of Appeals,Fourth Circuit

Nahigan Vs. Juno Loudoun (Decided on 01.05.2012)

Award of pre-judgment interest - Challenge thereto - Present Appeal filed against the order passed by the District Court wherein it passed a summary judgment on their rescission claim, however it failed to award a pre-judgment interest

Held, Given that the District Court provided no basis for distinguishing between the loaned funds and the Petitioner's equity, it was found that the District Court abused its discretion when it denied the Petitioner pre-judgment interest on the debt portion of their purchase funds. Hence the decree passed by the District Court was reversed and the Petitioner was awarded a pre-judgment interest.

• BANKRUPTCY LAWS

United States Court of Appeals, Third Circuit

In Re: Federal-Mogul Global (Decided on 01.05.2012)

Pre-emption of provisions - Bankruptcy and District Courts passed an order wherein it was held that U.S.C. § 1123(a)(5)(B) pre-empts the anti-assignment provisions

Held, In the instant case, the anti-assignment provisions did not implicate public health, safety, and welfare. But limitation of § 1123(a)'s preemptive scope on these grounds was sensible, and seemingly consonant with congressional intent, the purposes of the Bankruptcy Code, and precedent. It had often been noted that the Code existed not to provide a "haven for wrongdoers," but to "relieve the honest debtor from the weight of oppressive indebtedness and permit him to start afresh." Extending the well-established presumption against preemption of state police powers to § 1123(a) seemed to balance these aims, and might also forestall some of the more problematic hypotheticals advanced by Insurers. Hence, the anti-assignment provisions in the relevant insurance policies were preempted by § 1123(a)(5)(B) to the extent they prohibit transfer to a § 524(g) trust.