Relates to the purchase of claims by corporations or collection agencies; relates to the inference of an assignee's intent and purpose in taking an assignment of a claim against an obligor that is not an eligible obligor.
Impact
Should this bill be enacted, it would have substantial implications for the legal landscape governing how corporations and collection agencies can pursue claims against obligors deemed as non-eligible. In the context of sovereign debt, this restoration of the champerty defense could significantly enhance the protective measures for countries or governments against aggressive legal actions from non-conventional investors, thereby impacting international finance and investment relations.
Summary
Bill A00643 aims to amend the judiciary law and civil practice law regarding the purchase of claims by corporations and collection agencies. The primary intention of this legislation is to restore the champerty defense specifically in sovereign debt lawsuits that involve claims exceeding $500,000 and are brought by holdout investors. The bill differentiates between conventional and cooperative investors, excluding the latter from its potential implications, which helps maintain a balance between investor rights and the legal frameworks surrounding sovereign debt resolution.
Contention
The bill is likely to encounter opposition due to concerns surrounding its potential to inhibit the rights of legitimate debt holders in pursuing claims. Critics may argue that the restoration of the champerty defense could deter necessary financial recourse for valid claims in distress situations, thereby impeding the interests of investors who operate within legal boundaries to seek resolution. Furthermore, opponents might express concerns regarding the broader implications of the bill on corporate accountability in collecting debts, particularly in the context of sovereign finances.
Same As
Relates to the purchase of claims by corporations or collection agencies; relates to the inference of an assignee's intent and purpose in taking an assignment of a claim against an obligor that is not an eligible obligor.
Relates to the purchase of claims by corporations or collection agencies; relates to the inference of an assignee's intent and purpose in taking an assignment of a claim against an obligor that is not an eligible obligor.
Clarifies the standard for intentional discrimination or retaliation claims by requiring a person or persons prove that an unlawful motivation was a motivating factor and not "the sole motivating factor" or a "but-for cause" of the challenged treatment.
Permits amendment of a claim or notice of intention to file a claim to correct jurisdictional pleading defects and the dismissal of a claim based upon claimant's failure to comply with jurisdictional pleading requirements.
Permits amendment of a claim or notice of intention to file a claim to correct jurisdictional pleading defects and the dismissal of a claim based upon claimant's failure to comply with jurisdictional pleading requirements.
Permits amendment of a claim or notice of intention to file a claim to correct jurisdictional pleading defects and the dismissal of a claim based upon claimant's failure to comply with jurisdictional pleading requirements.
Classifies resident entrance fees for residents of continuing care retirement communities as an advance payment of services; imposes a statutory obligation to return any unearned entrance fee funds by an operator to the resident; provides that such statutory obligation shall not be deemed a general unsecured claim for purposes of a bankruptcy proceeding.