Constitutional Problems With the Kentucky Proposal (Supported by Mitch McConnell) to Change the Way U.S. Senate Vacancies Are Filled

VIKRAM DAVID AMAR

In this second of a series of columns, Illinois Law dean and professor Vikram David Amar comments on the Kentucky proposal to change the way U.S. Senate vacancies are filled. Dean Amar argues that the Seventeenth Amendment precludes such a proposal, which would allow the state legislature to substantively constrain the governor’s choices in making a temporary appointment.

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Kimble v. United States

Court: US Court of Appeals for the Federal Circuit

Docket: 19-1590

Opinion Date: March 22, 2021

Judge: Todd Michael Hughes

Areas of Law: Banking, Government & Administrative Law, Tax Law

The Greens opened a Union Bank of Switzerland (UBS) account around 1980, with their daughter, Kimble, as a joint owner. Kimble directed UBS to maintain the account as a numbered account and to retain all correspondence at the bank. Kimble married an investment analyst who agreed to preserve the secrecy of the account. The couple’s joint federal tax returns did not report any income derived from the UBS account nor disclose the existence of the foreign account. After the couple divorced, Kimble's tax returns were prepared by a CPA, who never asked whether she had a foreign bank account. In 2003-2008, Kimble’s tax forms, signed under penalty of perjury, represented that she did not have a foreign bank account. In 2008, Kimble learned of the Treasury Department’s investigation into UBS for abetting tax fraud; she retained counsel. UBS entered into a deferred prosecution agreement that required UBS to unmask numbered accounts held by U.S. citizens. Kimble was accepted into the Offshore Voluntary Disclosure Program (OVDP) and agreed to pay a $377,309 penalty. Kimble withdrew from the OVDP without paying the penalty. The IRS determined that Kimble’s failure to report the UBS account was willful and assessed a penalty of $697,299, 50% of the account. Kimble paid the penalty but sought a refund. The Federal Circuit affirmed summary judgment against Kimble, finding that she violated 31 U.S.C. 5314 and that her conduct was “willful” under section 5321(a)(5). The IRS did not abuse its discretion in setting a 50% penalty.

Navient Corporation v. Mississippi ex rel. Fitch, Attorney General

Court: Supreme Court of Mississippi

Citation: 2019-IA-01391-SCT

Opinion Date: March 25, 2021

Judge: Josiah D. Coleman

Areas of Law: Banking, Civil Procedure, Consumer Law

In 2018, the State of Mississippi filed a complaint against Navient Corporation and Navient Solutions, LLC (together, “Navient”), alleging that Navient’s origination of high-cost, subprime loans and predatory practices while servicing student-loan borrowers in Mississippi violated the Mississippi Consumer Protections Act. Navient moved to dismiss on two grounds: failure to state a claim and lack of venue. In 2019, the chancery court denied Navient’s motion; Navient timely petitioned the Mississippi Supreme Court for an interlocutory appeal, arguing that federal law preempted the State’s servicing claims and that injunctive relief under the Act did not apply because the alleged loan-origination misconduct ceased and could not recur. To this the Supreme Court disagreed and affirmed the trial court.

Citizens Bank, N.A. v. Palermo

Court: Rhode Island Supreme Court

Docket: 19-366

Opinion Date: March 22, 2021

Judge: Prata

Areas of Law: Banking

The Supreme Court affirmed the judgment of the superior court in favor of Citizens Bank, N.A. arising from two delinquent student loans, holding that the superior court did not err. In 2007, Defendant entered into two separate student loan agreements, one of which Defendant received from Charter One Bank, which later changed its name to Citizens Bank, N.A. In 2007, Citizens Bank filed this action seeking damages for the remaining amount due on the loans. After a hearing, the trial court granted summary judgment in favor of Citizens Bank. The Supreme Court affirmed, holding that Defendant's arguments on appeal were without merit.

Ocwen Loan Servicing, LLC v. Medina

Court: Rhode Island Supreme Court

Docket: 19-241

Opinion Date: March 25, 2021

Judge: Long

Areas of Law: Banking, Real Estate & Property Law

The Supreme Court affirmed the order of the superior court confirming the judicial foreclosure of Defendant's home in favor of Plaintiff, Ocwen Loan Servicing, LLC, holding that the superior court did not err. On appeal, Defendant argued that the trial justice erred by confirming the foreclosure sale because she had not been provided a copy of a notice of foreclosure counseling at least forty-five days prior to receiving the certified letter and that Plaintiff foreclosed the property without holding the note or the mortgage. The Supreme Court affirmed, holding (1) the trial justice did not err in confirming the judicial foreclosure sale; and (2) because Plaintiff had been assigned the mortgage prior to the foreclosure sale it did not need to hold the note in order to foreclose on the property.