Jonco, LLC v. Ali, Inc.

In 1994 one Brian Gillson owned a property in Middleton, Rhode Island, subject to a bank mortgage. At this time, Gillson — who had earlier filed for chapter 11 bankruptcy— was subject to a reorganization plan confirmed in 1992 by the U.S. Bankruptcy Court for the District of Rhode Island. The order confirming the plan provided that failure by Gillson to make payments pursuant to the mortgage, note, or other loan documents would trigger the default provisions in the documents, and the bank “retained its rights and remedies” provided in those documents. The bankruptcy court also explicitly…