NEW YORK - A federal judge in New York on Feb. 14 rejected a request by a number of financial institutions to reconsider her ruling denying use of documents from an unrelated actions for discovery, motion practice and trial, ruling that the defendants had ample time to include the documents in discovery earlier in the action (Federal Housing Finance Agency v. HSBC North America Holdings Inc., et al., Nos. 11-6189, 11-6190, 11-6193, 11-6195, 11-6198, 11,6200, 11-6201, 11-6202, 11-6203, 11-6739 and 11-7010, S.D. N.Y.).
ST. PAUL, Minn. - A federal judge in Minnesota on Feb. 14 denied the Federal Deposit Insurance Corp.'s motion for summary judgment and dismissed a defendant from a suit arising from an allegedly negligent property appraisal conducted for a bank that subsequently failed (Federal Deposit Insurance Corp. v. John M. Prill, et al., No. 12-1218, D. Minn.; 2014 U.S. Dist. LEXIS 18878).
CHICAGO - US Bank N.A. on Feb. 13 filed a brief in the U.S. District Court for the Northern District of Illinois supporting its motion to dismiss a lawsuit brought by a commodities broker that alleges that the bank was complicit in the fraud perpetrated by bankrupt Peregrine Financial Group Inc., which misappropriated $ 200 million in investment funds that were to remain segregated for individual customers (Fintec Group Inc. v. US Bank NA, No. 13-08076, N.D. Ill.).
CHICAGO - An investor who lost money in the bankruptcy of Peregrine Financial Group Inc. on Feb. 11 filed a brief in the U.S. Bankruptcy Court for the Northern District of Illinois arguing that he is entitled to $150,000 from the bankruptcy estate (In Re: Peregrine Financial Group Inc., No. 12-27488, Chapter 7, N.D. Ill. Bkcy.).
NEW YORK - UBS Real Estate Securities Inc., a creditor in the Chapter 11 bankruptcy of Residential Capital LLC (ResCap), on Feb. 13 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that it has a valid claim against the bankruptcy estate for $56,451,603 (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).
BROOKLYN, N.Y. - A federal judge in New York on Feb. 11 denied a motion to consolidate cases brought by the United States and state attorneys general and several merchants challenging American Express Co. and American Express Travel Related Services Co. Inc.'s (collectively, American Express) "anti-steering" rules, which prevent U.S. merchants from providing consumers with incentives to use forms of payment that are less expensive to the merchant than American Express-branded payment cards (In re: American Express Anti-Steering Rules Antitrust Litigation, No. 11-2221, United States of America, et al. v. American Express Co., et al., No. 10-4496, E.D. N.Y.; 2014 U.S. Dist. LEXIS 17226).
CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on Feb. 11 reinstated a man's fraudulent inducement claim against Bank of America N.A. and its loan servicing arm after finding that a federal judge in Tennessee erred in holding that the cause of action was barred by a state statute's three-year limitations period (Samuel R. Humphreys v. Bank of America N.A., et al., No. 13-5793, 6th Cir.; 2014 U.S. App. LEXIS 2739).
DENVER - The 10th Circuit U.S. Court of Appeals on Feb. 13 found that a district court did not err in deciding that no insured deposits were available to a Utah city via Federal Deposit Insurance Corp. insurance following a bank's failure (Kaysville City v. Federal Deposit Insurance Corp., No. 13-4011, 10th Cir.; 2014 U.S. App. LEXIS 2704).
NEW HAVEN, Conn. - A federal judge in Connecticut on Feb. 10 denied a motion to dismiss a suit ancillary to a Securities and Exchange Commission enforcement action arising from an alleged Ponzi scheme, dismissing defendants' personal jurisdiction and forum non conveniens arguments (John J. Carney Jr. v. Moris Beracha, et al., No. 12-0180, D. Conn.; 2014 U.S. Dist. LEXIS 16460).
LOS ANGELES - A lender's alleged failure to work with a customer in a mortgage forbearance agreement does not permit a California unfair competition law (UCL) action where the borrower cannot show a sufficient link between the conduct and foreclosure on his home, a state appeals court affirmed Feb. 7 (Marvin Baldwin v. Bank of America, N.A., No. B243789, Calif. App., 2nd Dist., Div. 4; 2014 Cal. App. Unpub. LEXIS 934).
WILMINGTON, Del. - The foreign representatives of bankrupt Irish Bank Resolution Corp. Ltd. (IBRC) on Feb. 11 filed a brief in the U.S. Bankruptcy Court for the District of Delaware supporting an asset sale and a settlement with creditor Tampa Port Authority (TPA) on grounds that the sole objector to the sale is "a disgruntled bidder" that has "no standing to complain" (In Re: Irish Bank Resolution Corporation Ltd., No. 13-12159, Chapter 15, D. Del. Bkcy.).
CLEVELAND - A federal judge in Ohio on Feb. 10 granted Huntington National Bank's motion to dismiss a negligence claim but denied its request to dismiss fraud and conspiracy claims from a suit alleging that it knew and/or conspired in the fraudulent activities of a convicted Ponzi schemer (Mark E. Dottore v. Huntington National Bank, No. 09-2636, N.D. Ohio; 2014 U.S. Dist. LEXIS 16301).
CHICAGO - A federal judge in Chicago on Feb. 6 refused to dismiss claims that the Bank of New York Mellon Corp. breached its fiduciary duties under the Employee Retirement Income Security Act by investing multiemployer pension and welfare funds' assets in notes issued by Lehman Brothers Holding Co. Inc. prior to Lehman's declaring bankruptcy (The International Brotherhood of Teamsters Union Local No. 710 Pension Fund, et al. v. The Bank of New York Mellon Corporation, et al., No. 13-1844, N.D. Ill.; 2014 U.S. Dist. LEXIS 15246).
ATLANTA - The 11th Circuit U.S. Court of Appeals on Feb. 10 affirmed the denial of RBC Bank (USA)'s motion to compel arbitration in a suit that is part of the multidistrict litigation in which customers allege that banks manipulated the order of debit card transactions to maximize checking account overdraft fees, finding that "the parties' silence provides no evidence that they agreed to be bound to arbitrate their disputes" (Michael Dasher v. RBC Bank [USA], No. 13-10257, 11th Cir.).
WASHINGTON, D.C. - Nonprofit financial reform group Better Markets Inc. on Feb. 10 sued the U.S. Department of Justice in the U.S. District Court for the District of Columbia to stop JPMorgan Chase & Co.'s record $15 million settlement with the DOJ for its alleged misrepresentative mortgage-backed securities offerings because the settlement was not reviewed or approved by a court (Better Markets Inc. v. United States Department of Justice, et al., No. 14-0190, D. D.C.).
NASHVILLE, Tenn. - A federal judge in Tennessee on Feb. 7 denied a motion to remand a suit arising from a failed bank's alleged breach of contract, finding that the suit does not meet the "state law exception" (I & M.J. Gross Co., et al. v. Federal Deposit Insurance Corp., et al., No. 13-0151, M.D. Tenn.; 2014 U.S. Dist. LEXIS 15616).
CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on Feb. 6 upheld the dismissal of a man's lawsuit against his mortgage lender after agreeing with a federal judge in Michigan that his claim for fraud was not pleaded with the required amount of specificity and that he was unable to pursue claims for rescission, reformation and quiet title (Gicu Rautu v. U.S. Bank, N.A., No. 13-1436, 6th Cir.; 2014 U.S. App. LEXIS 2410).
CHICAGO - The denial by the Federal Deposit Insurance Corp. in its corporate capacity (FDIC-C) of a claim for deposit insurance on a failed bank's accounts "was not arbitrary or capricious," a federal judge in Illinois held Feb. 7, granting the FDIC-C's motion for summary judgment and denying the plaintiff's motion for summary judgment (Dennis Pantano, et al. v. Federal Deposit Insurance Corp., No. 12-3951, N.D. Ill.; 2014 U.S. Dist. LEXIS 15431).
KANSAS CITY, Kan. - A company that manufactures computer equipment used in "mining" the virtual currency known as "Bitcoins" filed a motion on Feb. 4 to dismiss a customer's fraud and misrepresentation claims against it for failure to state a claim on which relief can be granted (Martin Meissner v. BF Labs Inc., No. 2:13-cv-02617, D. Kan.).
SACRAMENTO, Calif. - On remand, a woman may attempt to allege that her lender violated the California unfair competition law (UCL) by putting her in a nonconforming trial loan modification, a California appeals court held Feb. 5 (Svetlana Nersesyan v. Bank of America, N.A., No. C071934, Calif. App., 3rd Dist.).
LOS ANGELES - A federal judge in California on Feb. 3 granted a loan servicer's motion to dismiss a couple's claim for accounting but found that the plaintiffs sufficiently stated claims for alleged violations of California Civil Code Section 2923.6 and the unlawful prong of California Business and Professions Code Section 17200 (Sally Rosenfeld, et al. v. NationStar Mortgage LLC, et al., No. 13-cv-4830-CAS-CWx, C.D. Calif.; 2014 U.S. Dist. LEXIS 14034).
ST. LOUIS - A federal judge did not err when dismissing a class action suit filed by a Minnesota county seeking to recover millions of dollars in taxes the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corp. (Freddie Mac) and Federal Housing Finance Agency (FHFA) allegedly failed to pay when transferring deeds on properties, a panel of the Eighth Circuit U.S. Court of Appeals ruled Feb. 5 after finding that the defendant agencies were exempt from paying the tax (Hennepin County, et al. v. Federal National Mortgage Association, et al., No. 13-1821, 8th Cir.; 2014 U.S. App. LEXIS 2160).
NEW YORK - Morgan Stanley will pay $1.25 billion to settle claims that it, certain of its subsidiaries and others misrepresented the investment quality in more than $10.58 billion in certificates in connection with 33 securitizations of residential mortgage-backed securities Morgan Stanley sold to Fannie Mae and Freddie Mac, according to Securities and Exchange Commission documents filed Feb. 4 (Federal Housing Finance Agency, as Conservator for Fannie Mae and Freddie Mac, v. Morgan Stanley, et al., No. No. 11-6739, S.D. N.Y.).
NEW YORK - The growing end of financial crisis-era litigation resulted in a continued drop in the overall number of new securities and business litigation filings in 2014 for the second year in a row, while the average settlement amount in such cases was the highest it's been in five years, according to a report issued Feb. 3 by insurance industry analyst Advisen Ltd.
NEW YORK - Former CEO of bankrupt MF Global Holdings Ltd. (MFGH) Jon S. Corzine, along with other principals in MFGH, on Feb. 4 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that the trustee in the Securities Investor Protection Act (SIPA) litigation related to MFGH's affiliate MF Global Inc. should not be permitted to decommission computers because it will interfere with discovery being conducted in related litigation (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).