Green Tree Servicing, LLC v. Duncan — Navajo Supreme Court September 7, 2008Posted by rezjudicata in Navajo Supreme Court, Tribal Courts.
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Navajo Supreme Court says federal Bankrupcy Code does not protect assignees of debtor; invalidates arbitration clause under Navajo Fundamental Law.
Issues: Federal Law > Bankruptcies >> Automatic Stays; Navajo Fundamental Law > Contracts >> Arbitration Clauses
After Conseco filed for bankruptcy, Green Tree purchased Conseco’s loan servicing contracts. This included Duncan’s loan for the purchase of a mobile home. Sometime later Green Tree filed a repossession action against Duncan. Duncan counterclaimed for fraud, harassment, and assault. Does the “automatic stay” provision of the Bankruptcy Code bar Duncan’s counterclaims? If not, did an arbitration clause in the original contract bar the counterclaims?