Judge upholds car dealer’s funds transfer contract

From Westlaw Journal Bank & Lender Liability: A Wisconsin federal judge has ruled that a car dealer did not violate federal law by requiring a customer to provide five days’ notice before canceling an authorization to have car payments automatically deducted from her bank account.

Magistrate Judge Stephen L. Crocker of the U.S. District Court for the Western District of Wisconsin said the Electronic Fund Transfer Act’s three-day cancellation period did not apply to Interstate Auto Group Inc. because it is not a financial institution.

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Kuwaiti subcontractor sues Navy over vehicles used in Africa

From Westlaw Journal Government Contract: A Kuwaiti firm that acted as a federal subcontractor in Africa says in a lawsuit that the Navy must compensate it for the loss of the use of company vehicles confiscated by Djiboutian authorities. 

Global Freight Systems Co. says in a complaint filed in the U.S. Court of Federal Claims that the circumstances surrounding the confiscation amount to an illegal taking by the Navy under the Fifth Amendment.

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Overdraft fees amount to usury interest rates, suit says

From Westlaw Journal Bank & Lender Liability: An Oklahoma woman has filed a class-action lawsuit alleging an Oklahoma bank charges a second overdraft fee that amounts to a loan with a usurious interest rate.

In a complaint filed in the U.S. District Court for the Northern District of Oklahoma, Betty Shaw alleges BOKF National Association, previously known as the Bank of Oklahoma, maximizes its profits by illegally imposing an “extended overdraft fee” when a customer account remains overdrawn for a specific period.

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Contractor sues United States over helium extraction deal

From Westlaw Journal Government Contract: A Colorado company says the government’s Bureau of Land Management breached two contracts related to its right to extract helium gas from federal lands.

Rocky Mountain Helium LLC says in a lawsuit filed in the U.S. Court of Federal Claims that the BLM breached its extraction contract by failing to give the company the first chance to enter into a new deal for obtaining helium on the same land.

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7th Circuit revives mortgage borrower’s suit over payments via website

From Westlaw Journal Bank & Lender Liability: The 7th U.S. Circuit Court of Appeals has ruled that a mortgage borrower can continue with a lawsuit alleging her loan servicer violated federal law by failing to timely credit her account when she used the company’s website to authorize payment from her bank.

The Circuit Court reversed a lower court’s decision that NYCB Mortgage Co. did not violate the Truth in Lending Act by waiting to receive the funds from Elena Fridman’s bank before crediting her account.

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Threatened Iraqis seek court order to compel special visa processing

From Westlaw Journal Government Contract: Nine Iraqi citizens who say they risked their safety to assist the United States and its contractors during Operation Iraqi Freedom have asked a U.S. federal court to compel the Departments of State and Homeland Security to process their special immigrant visas for entry into the country.

The plaintiffs, all of whom are identified by pseudonyms, include doctors, interpreters and civilian employees who worked for the U.S. military, the U.S. Army Corps of Engineers or federal contractors during the Iraq War, according to the suit.

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Company says Navy must pay $65 million for loss of airship

From Westlaw Journal Government Contract: A California company says in a federal lawsuit that the government must pay more than $65 million to cover the loss of a blimp-like airship destroyed when the roof of a Navy hangar collapsed.

Aeros Aeronautical Systems Corp. says the Navy knew the roof had structural defects when it allowed the company to use the premises to store the Aeroscraft, a variable buoyancy airship designed to carry heavy cargo

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DynCorp must face Afghanistan vendor’s claim for $2.6 million in pay

From Westlaw Journal Goverment Contract: A Texas federal judge has ruled that an Afghanistan company can proceed with its claim that DynCorp International owes it for work performed on a housing facility in Kabul

C3PO International Ltd. can pursue allegations that DynCorp failed to pay $2.6 million worth of invoices for services performed before the defendant terminated its contract, U.S. District Judge John McBryde of the Northern District of Texas ruled.

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Debt collection case belongs in bankruptcy court, judge rules

From Westlaw Journal Bank & Lender Liability: A lawsuit accusing a debt collector of attempting to collect a mortgage debt by threatening foreclosure and demanding payment of allegedly incorrect amounts belongs in a bankruptcy court, a federal judge has decided.

U.S. District Judge Elizabeth A. Wolford of the Western District of New York threw out Donna Garfield’s complaint, saying that because the mortgage debt was discharged by a bankruptcy court she cannot bring her claims under the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, in the District Court.

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L.A. Times sues Pentagon for info on defense contractor bonuses

From Westlaw Journal Government Contract: The Los Angeles Times and one of its reporters have sued the Defense Department to get information about bonuses and incentives paid to contractors working on a missile defense system.

The complaint, filed Jan. 15 in the U.S. District Court for the Central District of California, says the agency failed to provide the information following the newspaper’s proper requests under the Freedom of Information Act, 5 U.S.C. § 552.

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