On June 12, 2017 in the case of Henson, et. al. v. Santander Consumer USA, Inc., 817 F.3rd 131 (2017), the United States Supreme Court rendered an important decision that declared all debt buyers exempt from the Fair Debt Collection Practices Act’s (“FDCPA”) definition of a “debt collector.” This decision is important because it provides clarity to banks and other debt buyers that they will not be treated as “debt collectors” subject to the penalties of the FDCPA, it will provide debt buyers with a valid defense to FDCPA litigation, and it should eliminate many unnecessary and frivolous FDCPA suits.
Most debt buyers have long believed that they should not be classified as “debt collectors” under the FDCPA, but there was a lack of case law supporting that contention. The absence of strong controlling case law led to unnecessary litigation for many debt buyers. Debt buyers can now adjust their business models to account for the Supreme Court’s decision. If a debt buyer is now sued under the FDCPA, the Henson decision will act as the first line of defense in rebuffing such a suit. As word of the Supreme Court’s decision quickly spreads through the legal community, Plaintiff’s attorneys who have made a habit of suing debt buyers for alleged FDCPA violations should quickly change course and cease what will now be considered frivolous litigation.
If you believe you may qualify as a debt buyer that should be protected from classification as a “debt collector” under the FDCPA and are facing the threat of a potential suit, or even a pending suit, call us today to discuss how we may be able to defend your interests. The Henson decision will give you additional leverage to help make these threats and lawsuits go away.
(PITTSBURGH) March 3, 2017 – Prime Metals & Alloys Inc. (PMAI) announced yesterday afternoon that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in order to better position its operations and debt structure for the future. The petition was filed in the U.S. Bankruptcy Court for the Western District of Pennsylvania.
Continue reading “Prime Metals and Alloys, Inc. Files for Chapter 11 Reorganization”
Bernstein-Burkley, P.C. Co-Managing Partner, Kirk B. Burkley, discussed Pennsylvania school distress laws in a recent Debtwire article. The article, “Red Lion Schools’ SOS tests Pennsylvania distress laws” covered the school district’s available legal solutions to its current financial issues.
From the article:
“While school distress in Pennsylvania continues to spread, the legislature’s mechanisms for alleviating financial hardship appear out of commission because state Democrats and Republicans can’t reach an agreement on the budget.
‘Without some special or specific authorization, schools cannot file for bankruptcy,’ said restructuring attorney Kirk Burkley of Bernstein-Burkley, PC. Burkley is co-managing partner at the firm.
Additionally, the restructuring expert doesn’t anticipate that schools will be able to enter financial recovery status under current law.
This is because of a subsection in Pennsylvania Act 141 stipulating that no school district ‘shall be declared in financial recovery status’ if its financial condition has been caused by the ‘failure of the commonwealth to make any payment of money due to the school district at the time the payment is due, including payment of any Federal Funding that is distributed through the commonwealth.'”
To read the full article, CLICK HERE.
Robert S. Bernstein has been named a “Newsmaker” by the Pittsburgh Tribune-Review. The feature highlighted his vast experience in the legal field, several of his high-profile cases and his recent recognition by the prestigious American College of Bankruptcy.
To read the full article, CLICK HERE.
Bernstein-Burkley, P.C. is featured in the October edition of the ABI Journal in an article titled “ABC-Certified Attorneys Score Big.” The article discusses the firm’s successful, multi-million dollar verdict on behalf of the unsecured creditors’ committee in the Lemington Home for the Aged bankruptcy case. The eight-year legal battle was a welcomed victory for Bernstein-Burkley and its attorneys who invested a tremendous amount of time and hard work fighting on behalf of the unsecured creditors’ committee.
To read the full article, CLICK HERE.
Robert Bernstein and Arch Riley named ‘Lawyer of the Year’ in Litigation and Bankruptcy
Bernstein-Burkley, P.C. partners, Robert S. Bernstein, Kirk B. Burkley and Arch W. Riley, Jr. have been selected by their peers for inclusion in the 22nd Edition of The Best Lawyers in America©. Continue reading “Three Bernstein-Burkley, P.C. Partners Recognized by Best Lawyers®”
Bernstein-Burkley Partner, Nicholas D. Krawec, was featured in a National Association of Credit Management (NACM) article discussing how creditors’ can address the increase in rejected electronic funds transfer (EFT) and automated clearing house (ACH) transactions.
From the article:
“Though far from widespread, bad EFT/ACH payment incidents have become more frequent in Pennsylvania, Ohio and West Virginia, according to Nick Krawec, Esq., partner at law firm Bernstein Burkley PC. Statutory language from state to state typically addresses bad check situations, but it rarely specifies or defines EFT or ACH protocol and can be wildly inconsistent, said Krawec …. In addition, enforcement at the local magistrate level can be even worse, in part because there is less familiarity with EFT and ACH compared with bad checks.
Bernstein-Burkley Co-Managing Partner, Robert S. Bernstein, was featured in a National Association of Credit Management (NACM) article discussing how moving through the bankruptcy process too quickly can lead to a company returning to Chapter 11.
From the article:
“Companies and courts try to move cases along and get them out of Chapter 11 quickly,” Bernstein said. “That often results in either getting money from people who are not in for the long term because of their goals, or because of the interest rate expense, or kicking issues down the road which, if not resolved, can cause the second filing.”
Continue reading “Robert Bernstein Comments on the Cost of a Quick Bankruptcy in NACM Article”
Kirk Burkley Comments in Law360 Article on Behalf of Creditors’ Committee in Lemington Home for the Aged Case.
Co-Managing Partner, Kirk B. Burkley, was recently interviewed by Law360 on behalf of Bernstein-Burkley, P.C.’s client, The Official Committee of Unsecured Creditors of the Lemington Home, following the full Third Circuit’s refusal to rehear a precedential decision that affirmed $4 million of a jury verdict in favor of the Committee. This is another positive step forward for the Committee.
In March of 2013, in an action for various breaches of fiduciary duty and deepening insolvency, a federal jury awarded the Committee compensatory damages of $2.25 million against the Home’s former officers and directors and additional punitive damages for the egregious nature of their actions. On appeal, the Third Circuit held that enough evidence was presented by the firm to sustain the compensatory damages award and to establish that the punitive damages award of $1 million and $750,000 against the CFO and CEO, respectively, was proper.
To read the full article, click here or view as a PDF.
Bernstein-Burkley, P.C. was featured in the “Law Firm Spotlight” section of Collection Advisor’s January/February edition. Robert S. Bernstein, Co-Managing Partner, discusses the law firm’s more than 40-year history and its evolution in the legal collections practice area. He also answers questions regarding the pitfalls in legal collections, how new technology can assist with case work, and how agencies should be preparing for the 2015 collection year.
To read the full article, click here “Protecting Business from Protracted Litigation” OR view as a PDF.
In a recent Times Leader article on Luzerne County’s mounting financial woes, Bernstein-Burkley, P.C. co-managing partner, Kirk B. Burkley, discussed what municipal bankruptcies could mean for cash-strapped local governments. Burkley focused on how the future success of Detroit could have a significant influence on other municipalities considering bankruptcy.
Kirk B. Burkley, an attorney with Pittsburgh-based Bernstein-Burkley, P.C., which specializes in bankruptcies and restructuring, believes more cash-strapped local governments will consider bankruptcy if Detroit bounces back as he expects. The city shed billions of dollars in debt and is now on “solid financial footing” for the first time in decades, he said.
To read “Bankruptcy not a panacea for for Luznere County’s ills,” click this link, or view the article as a PDF.
Continue reading “Kirk Burkley Talks Municipal Bankruptcies with the “Times Leader””
Kirk Burkley Comments on the Controversial Possible Sale of August Wilson Center and Its Impact on Unsecured Creditors Bernstein-Burkley, P.C. co-managing partner, Kirk Burkley, recently commented on the controversial $8.85 million deal to sell the August Wilson Center for African American Culture, which has a foreclosure deadline only weeks away.
Legal experts question whether Zappala can thwart mortgage-holder Dollar Bank’s planned Nov. 3 foreclosure.
“Whether or not Zappala has the authority to freeze bank accounts is wholly unrelated to whether or not the foreclosure goes through,” said Kirk Burkley of the Downtown bankruptcy and restructuring firm Bernstein-Burkley.
Continue reading “Controversial Possible Sale of August Wilson Center & Impact on Unsecured Creditors”