Case Studies

Developing Better Rules for Ohio SBAM Regulation

The General Assembly, in an attempt to thwart the rise of illegal casinos, authorized the Casino Control Commission to regulate skill-based amusement games. Because of the broad scope of games captured by the new law, the CCC’s rules regulated SBAMs traditionally operated within family entertainment venues patronized by children. Our client operated dozens of family entertainment centers, and the draft of new rules would have required thousands of dollars in registration fees, over-regulation and compliance issues as collateral damage. 

The purpose of the law was not to regulate SBAMs used by children of tender years who were clearly not gambling. On behalf of our client, we worked with the regulators to develop better rules, appropriate exemptions and reasonable fees to address a multitude of issues to narrow the scope to the regulator’s intended target.

Eviction Cases and Bankruptcy Dismissals for Ohio Real Estate Company

Our client, a local real estate company, needed assistance with removing a nonpaying business tenant, which had multiple pending bankruptcy cases, from its premises. Kegler Brown handled both the eviction cases and the bankruptcies, first obtaining a dismissal of the tenant’s first bankruptcy case and then resolving the second in January 2017.

Advising on Repossession Processes for a National Credit Union

Kegler Brown advised United Federal Credit Union on revising its notices of repossession to be compliant with Ohio laws. This included guidance on the differences between the credit union’s Retail Installment Sales Contracts and regular financing it had on its books. It also included variations based on whether or not the borrower was currently in bankruptcy or had been through a previous bankruptcy and whether or not the repossession was done voluntarily. Our team worked with the credit union to create forms for use by its associates that could be easily (and lawfully) completed during the proper handling of a vehicle repossession in Ohio. In addition, the credit union now uses our firm for subsequent questions on specific repossession matters.

$105,000 Foreclosure on Properties in 3 Ohio Counties

In 2016, Kegler Brown represented a loan servicer for a debt secured by four parcels of real property located in three separate counties in Ohio. The work of our lawyers enabled our client to file a single action, rather than three lawsuits in three separate counties, by filing a single foreclosure action in Franklin County, which also attached jurisdiction to the properties located outside the county.

Another defendant to the foreclosure disputed the client’s lien priority based on the borrower’s fraudulent loan application. Kegler Brown also bifurcated the lien priority dispute from the sale of the properties, allowing a faster sale to prevent the accrual of property taxes pending resolution of the lien priority dispute. 

$1.5M+ Loan Collection Through Property Liquidation

Our client loaned approximately $2 million to the operators of a chain of tobacco stores, with the stores and other real property located in three counties serving as collateral. Kegler Brown filed a foreclosure suit in one county, but extended jurisdiction over the real properties in the other two. One of the borrowers filed bankruptcy, but our lawyers obtained a relief from stay and were able to proceed with the suit. An auctioneer was appointed to liquidate the properties after the foreclosure judgment was granted in mid-2016.

$300,000+ Medical Machinery Seizure and Lien Invalidation

In early 2015, our client, a second secured creditor behind a lien filed by the debtor, filed suit against a large medical company in Phoenix. In conjunction with local counsel, Kegler Brown orchestrated the successful seizure of a 15,000-pound medical imaging device and, in an effort to liquidate the machine, obtained a declaratory judgment action against the debtor, seeking a declaration that the lien was invalid. By early 2016, the machine was successfully liquidated and our client received in excess of the principal amount owed, allowing them to fully recover interest charges and other fees.

$1.5 Million Liquidation of Shoe Retailer

Our lawyers represented the bankruptcy trustee in the liquidation of a multi-state fashion shoe retailer with inventory valued at more than $1.5 million. Our work included assisting in the closure of four stores in urban retail malls across three states. We also litigated and resolved contested claims of landlords for unpaid rent and charges due under defaulted leases and secured approval of the court for the Trustee’s bulk sale of inventory to a nationally known liquidator. Ultimately, Kegler Brown lawyers prosecuted the actions to recover preferential transfers.

Cognovit Judgment on 100 Residential Properties Across Several States

On behalf of Advantage Bank, we successfully obtained cognovit judgment against a borrower on loans collateralized by nearly 100 residential properties across several states. This involved the appointment of receiver, which stabilized the cash flow from operations. We also successfully defended the borrower’s attack on the validity of our client's mortgages in bankruptcy proceedings and subsequently handled the receiver’s sale of all real property collateral.

Defense of First Lien Position for a Community Bank

Our firm successfully prosecuted a CF Bank's first lien position by obtaining a state court receiver. We defeated the borrower’s attempt to stop foreclosure by filing personal business bankruptcy and restored operation of property in the bank’s receiver and helped stabilize cash flows. Our lawyers also developed and prosecuted follow-up actions against the borrower’s spouse and a closely held limited liability company (LLC). Additionally, we enhanced our client’s recovery through actions against title insurer for its negligence.