Business Law Section

The Business Law Section furthers the knowledge of its members in the law of the Uniform Commercial Code, banking law, corporate law, partnership law, matters of debtor and creditor relations, and litigation practice related to such law.

Chair
Lincoln Memorial University Duncan...
601 W. Summit Hill Dr.
Knoxville, TN 37902
(865)545-5318
Immediate Past Chair
Egerton, McAfee, Armistead &...
P. O. Box 2047
Knoxville, TN 37901-2047
(865)546-0500
Staff Coordinator
Tennessee Bar Association
221 4th Avenue N. Suite 400
Nashville, TN 37219
(615)383-7421

Remington Declines to Say if Bankruptcy Will Put Existing Settlement at Risk

Remington, America's oldest gun manufacturer, filed Chapter 11 bankruptcy on Monday, sparking questions on how this will affect an agreement to repair millions of allegedly defective guns that resulted in a lawsuit. The suit began in 2010 when CNBC investigated allegations that for decades Remington covered up a deadly design defect that allows the guns to fire without the trigger being pulled. To this day, Remington denies the allegations and maintains the guns are safe.
 
The company said it was settling the case to avoid protracted litigation. An attorney for Remington refused to say whether the plan by America's oldest gun manufacturer to file for Chapter 11 bankruptcy protection will affect an agreement to repair millions of allegedly defective guns. "It is the company's position not to comment," said John Sherk, attorney for Remington.
 
An attorney representing plaintiffs in the case, J. Robert Ates, says the bankruptcy filing should be of no moment in terms of the class action case, particularly because the suit also named as a defendant E.I. du Pont de Nemours and Company, which owned Remington when the original trigger mechanism was developed. The company, which merged with Dow Chemical last year to form DowDuPont, recorded $24 billion in revenues 2016.
 
Under the proposed settlement - which Remington and plaintiffs have claimed could be worth upwards of $500 million - DuPont would fund only a tiny amount, covering product vouchers being offered to owners of some of the oldest Remington models. DuPont has also continuously maintained that the guns are safe.
 
Neither Remington nor its attorneys have indicated whether the company intends to abide by the agreement considering the bankruptcy filing. While the settlement includes a guarantee that the company will meet its financial obligations under the agreement, it does not address the possibility of a bankruptcy. The settlement is currently under appeal in the Eighth U.S. Circuit Court of Appeals.
 
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Hazelwood, Jones Guilty of Conspiracy in Pilot Flying J Trial

A jury today found former Pilot Flying J President Mark Hazelwood and former account representative Heather Jones guilty of conspiracy to commit wire and mail fraud, Knoxnews reports. Co-defendants Scott Wombold and Karen Mann were found not guilty of conspiracy, but Wombold was found guilty of a single count of wire fraud. The group has been on trial since November over a plot to use fuel discounts to lure small trucking firms to do business with Pilot Flying J and then shorting those firms on what they were promised.
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