Creditors’ rights, Chinese-style

china bankruptcy.gifThis earlier post noted the paradigm shift in favor of creditors that has occurred recently with the amendments to the U.S. Bankruptcy Code, but that shift is nothing in comparison to the pressure that creditors in China can apparently bring to bear upon struggling debtors.
Get a load of this First Circuit Court of Appeals decision involving an appeal of a lower court decision denying a young Chinese woman’s request to remain in the U.S.:

Petitioner grew up in a small village in southeastern China. In 1998, her father partnered with Su Fei Pan, a local Communist Party boss, to start a new business. After an employee embezzled the business’s proceeds, the venture failed and petitioner’s father was left unable to pay off his outstanding loans.
Su Fei Pan, however, brokered a deal to clear the father’s debts. A wealthy Taiwanese man would pay off the debts if petitioner’s father would permit the man to marry his daughter, petitioner’s older sister. Petitioner’s father agreed, but the sister, who was 19 years younger than the Taiwanese man, refused and ran away from home.
A month later, in September 1999, Su Fei Pan attempted to broker the same deal but with petitioner taking the place of her older sister. Su Fei Pan told petitioner that her older sister was waiting for her in a hotel in the city of Fuzhou (a two hour drive from her village). When petitioner entered the hotel room, she was grabbed by an older man, presumably the Taiwanese man, who then tried to force her down onto the bed. Petitioner resisted and was able to escape. She fled from the hotel and went into hiding.

After hiding from her father, the Communist Party official and the Taiwanese man for several years in China, the young girl eventually made her way to the U.S. in 2002 with a fake visa, where she was promptly arrested at the LA airport and placed into custody for another few years. Inasmuch as she does not belong to a particular social group (“unmarried young wom[en] from rural China . . . who have resisted being forced into marriages and sexual relationships by a person in power” apparently isn’t good enough), the First Circuit affirmed the Immigration Board’s ruling and sent the young woman packing to China, where presumably the Communist Party is still providing brokerage services for her marital future.
Sort of makes you wonder what collection strategy the Communist Party would have taken had the father not had any daughters? Hat tip to Appellate Law & Practice for the link to the First Circuit decision.

The Texas Untouchables?

SWAT-Stack-200.jpgWhile perusing the Chronicle over the past couple of days, I came across this article about the Texas Alcoholic Beverage Commission quietly suspending a program of stepping up arrests of intoxicated bar patrons after state legislators scheduled a hearing this week to investigate complaints from the public ó and legislators ó about how the arrests were being carried out.
I’m not a patron of bars, so I didn’t think much more about the article until yesterday, when I read this follow-up article about the hearing. State Senator John Whitmire of Houston, who co-chaired the hearing and is usually quite supportive of the TABC, was reportedly outraged by the “cowboy attitude” exhibited by TABC agents, which included storming targeted bars while outfitted in full-SWAT team gear. Other committee members reported stories of patrons forced up against a wall en masse. In fact, a number of witnesses testified about being arrested without a sobriety test and, in one case, of being arrested after passing a Breathalyzer test. At one point, TABC even invited a local television camera crew to film their sting operations!
Now, let me get this straight. Alcohol control agents are dressing in SWAT gear to raid bars where people are drinking, all for a spot on the 10 o’clock news?
My sense is that we could use a bit of housecleaning at the TABC.

Billy Goldberg, R.I.P.

Billy Goldberg.jpgLongtime Houston businessman and Texas Democratic leader Billy Goldberg died this past weekend at the age of 90. The Chronicle story on Billy’s life and death is here.
Billy was one of the many colorful larger-than-life characters who I have had the privilege of getting to know while practicing law in Houston over the past 27 years. A well-known Democratic Party activist for much of his life, Billy was in his late 70’s when I first met him. By that time, he had put most of his political activities aside to concentrate on business interests.
Billy was a risk-taker in business, so he had his share of financial and legal challenges. Eight or nine years ago, when he was in his early 80’s, Billy called me to help him work out a particularly complex jumble of business and legal problems. After a long but delightful meeting in which Billy laid out his problems in between anecdotes about LBJ and John Connally — and reminding me of possible help that he could receive from Clinton Administration officials — I presented a couple of alternative strategies, one of which was simply to pull back and prepare for retirement:

“Billy, you’re in your early 80’s,” I reasoned. “This approach would allow you to retire comfortably. Doesn’t that make most sense at this point in your life?”
“No, Tom, I don’t think so,” replied Billy with a wry smile. “The way I see it, I’ve only got six or seven more years of really good income-producing potential before I think about retiring. I don’t want to waste that potential!”

Six or seven more “really good income-producing years” after the age of 80? I just hope I have a fraction of Billy’s energy if I reach my early 80’s! Rest in peace, friend.