| Volume 143 Number 39 |
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The People’s Lawyer’s Tip of the Day
Economic impact payments from the government might help deal with financial stress during this pandemic, but some people may look for other ways to borrow money for a short period of time. They may consider options like a payday loan or a car title loan, which can be very expensive. Here’s what you need to know. Click here for more.
Credit card companies lower credit limits as the pandemic rolls on
In February, before the pandemic took over, the likelihood of a consumer’s application for a credit card limit increase being rejected was at a six-year low.
That was then, but the this-is-now narrative is quickly changing. The big players in the credit card game are starting to protect themselves by lowering customer spending limits. To them, it’s a no-brainer: if people can’t work, they’re probably not likely to pay their creditors. Click here for more.
Your Money
More than 22 million Americans have filed for unemployment benefits in the past four weeks. They may be eager to get the money, but they may not be thinking about how the benefits are taxed. The federal government taxes unemployment benefits as ordinary income (like wages), but you don't have to pay Social Security and Medicare taxes on this income. Click here for more.
For the Lawyers
Court adopts the “face-of-the-award” rule for dealing with arbitrator errors in damage calculations under Section 11(a) of the FAA The Tenth Circuit U.S. Court of Appeals adopted the “face-of-the award” rule, despite granting “double recovery” to an elderly couple. The couple’s expert testified their out-of-pocket losses were about $292,000 and their actual damages, based on returns from appropriate investments, were between $485,000 and $610,000. In their final prayer for relief at the hearing, the couple asked only for market-adjusted damages. The FINRA arbitrators found for the couple and awarded them both their net out-of-pocket and their market adjusted damages of $777,092, plus interest, attorneys’ fees, and costs. The couple moved to confirm the award, arguing the court could modify the award to correct the alleged double recovery only if there was an “evident material miscalculation of figures” on the face of the award. The U.S. District Judge agreed with the couple and adopted the “face-of-the-award” rule which holds that a miscalculation or mistake is “evident” only if it appears in the award. The Tenth Circuit affirmed. With this decision, the 10th Circuit joins the Fourth, Sixth, and Eleventh Circuits in affirming the “face-of-the-award” rule, widening the split in the circuits. The Fifth and Seventh Circuits allow courts to consider some parts of the record. Mid Atl. Capital Corp. v. Bien, No. 18-1195, 2020 WL 1860125 (10th Cir. Apr. 14, 2020). Click here for more.