The close-connectedness doctrine is a rule employed by certain courts to disqualify individuals from being recognized as holders-in-due-course if they have a close relationship with the original note holder. Consequently, if the person who transferred the note to you is closely connected to you, your legal rights may not be equivalent to those of someone who received the note from a more distant party.
The close-connectedness doctrine is a legal principle that some courts use to prevent an assignee of a negotiable note from being considered a holder-in-due-course if they have a close relationship with the original holder-mortgagee. For instance, if a mortgage company assigns a note to a subsidiary or affiliate company, the assignee may not be considered a holder-in-due-course under the close-connectedness doctrine. This is because the assignee is closely connected to the original holder-mortgagee. The purpose of the close-connectedness doctrine is to safeguard against collusion or fraud between the original holder-mortgagee and the assignee, which could harm the interests of the borrower or other parties involved in the transaction.
The Close-Connectedness Doctrine is a legal principle that allows a court to exercise jurisdiction over a defendant who has a close connection to the forum state, even if the defendant’s actions did not occur within the state.
The court will consider factors such as the defendant’s contacts with the forum state, the nature of the defendant’s relationship with the state, and the extent to which the defendant’s actions have an impact on the state.
No, the Close-Connectedness Doctrine is typically used in cases involving torts or other civil claims.
No, the Close-Connectedness Doctrine does not apply to criminal cases.
Yes, a defendant can challenge the application of the Close-Connectedness Doctrine by arguing that the court does not have jurisdiction over them.
If the court determines that the Close-Connectedness Doctrine applies, it will have jurisdiction over the defendant and can proceed with the case.
Yes, a defendant can be sued in multiple states under the Close-Connectedness Doctrine if they have close connections to each state.
Yes, the Close-Connectedness Doctrine is recognized in all states.
Yes, the Close-Connectedness Doctrine can be used to establish personal jurisdiction over a corporation if the corporation has a close connection to the forum state.
Yes, the Close-Connectedness Doctrine can be used to establish jurisdiction over a defendant who is not a resident of the United States if they have a close connection to the forum state.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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