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Under Massachusetts law, a holder in due course takes a negotiable instrument free from the claims of others; however, when the taker obtains the instrument with notice of another’s claim to the instrument, notice will negate the taker’s holder in due course defense. Notice of a fiduciary breach concerning the instrument is notice of a claim, so that a person who takes the instrument from a payor with notice of the payor’s fiduciary breach to another is not a holder in due course. In Jelmoli Holding, Inc. v. Raymond James Financial Services, Inc., the First Circuit Court of Appeals considered whether, under Massachusetts law, a plaintiff may negate a holder in due course defense when the defendant had no actual knowledge that the person presenting the instrument was a fiduciary. The First Circuit held, pursuant to the General Laws of Massachusetts, that a plaintiff must demonstrate that a defendant had actual knowledge of a fiduciary’s status, in addition to notice of the fiduciary’s underlying breach of duty. . . .
The ease with which strangers may access personal information about others through the internet and other electronic sources has resulted in the conclusion that meaningful individual privacy no longer exists. This is felt nowhere more acutely than with personal medical records. Indeed, according to a 1999 Harris Equifax survey, “over 80% of public respondents felt they had ‘lost all control’ over their personal [medical] information.” This problem has led important players in the health care industry to conclude medical record privacy protection is “non-existent.” In response to this concern, fifteen percent of Americans engage in privacy-protective behavior to shield themselves from unwanted disclosure of health information, including giving healthcare providers inaccurate information, paying out-of-pocket for medical care normally covered by insurance, doctor-hopping to avoid consolidation of records, or even avoiding healthcare altogether. . . .