In New Mexico, the Public Regulation Commission (PRC) grants licenses to and regulates various utilities who want to operate within the state including water utilities. Back in 1983 the PRC issued Moongate Water Company, Inc. ("Moongate") a certificate of public...
Month: February 2014
City of Detroit Submits Plan of Adjustment in Bankruptcy Case
The City of Detroit, the largest municipality in the country to avail itself of bankruptcy protection, submitted its Plan of Adjustment to the federal bankruptcy court handling its case. This plan represents the blueprint for how the city seeks to pay its creditors...
Being Careful about One’s Agreements
Parties finding themselves in default of a contract have a strong incentive to cure that default. Often, however, the urgency to remove oneself from a precarious legal posture can lead to even greater future jeopardy. As an instructive example, the case of Rehm v....
Bankruptcy Trustee Gets Green Light to Pursue Pension to Recover Fraudulent Transfers
When an individual or company files for bankruptcy protection, a duly-authorized trustee takes control of the estate. So long as the bankruptcy action continues, the trustee on the case has the standing to seek to recover any assets or funds he or she believes to be...
When Is a Contract not Really a Contract?
Tesla Motors, Inc. and the Rio Real Estate Investment Opportunities, LLC ("Rio") entered into what was entitled the "Development Agreement" on February 19, 2007. Under the terms of the agreement, Rio planned to build a 150,000 square foot facility for the electric...
Three Factors Informing Business Formations
When an individual or group aspires to start a new business, one of the major decisions that must be made is what kind of business entity should be formed to operate the business. This means figuring out whether to form a corporation or partnership or operate the...
New Option for Dealing with Building Code Violators
While many cities and states impose civil fines and penalties on builders who fail to meet building code standards, the law of the city of Albuquerque recognizes such violations only as matters to be tried in criminal court. The rationale that such punitive remedies...
Bankruptcy Trustee Loses in Bid to Recover for Estate Transferred by Debtor
In any bankruptcy action, the trustee has the capacity to recover any funds which he or she believes was improperly transferred or paid from the debtor's estate prior to the bankruptcy filing. The law gives the trustee this power to ensure either that individuals...
Environmental Groups to Quick to Sue in Land Use Case
The Combined Hydrocarbon Leasing Act of 1981 allows lease holders who have permits to use the land for oil and gas extraction to convert those permits to CHLs (combined hydrocarbon leases). Such a conversion would enable the lease holder to produce oil from tar sands,...
FDIC brings tort action against former officers of New Mexico bank
When a bank goes into receivership, bank executives should not assume that any losses the bank itself -- or its shareholders -- sustains will be the sole losses. The Federal Deposit Insurance Corporation (FDIC), acting as the receiver of the First Community Bank, sued...
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