Mealey's Banking & Finance - Texas Panel Upholds Dismissal Of Challenge To Lending Ordinance

    DALLAS - A Texas appeals court on May 23 rejected payday lending companies' challenge to restrictions the City of Dallas placed on credit access businesses' (CABs) short-term loans, finding that a trial court did not err in holding that it did not have equity jurisdiction or subject matter jurisdiction over the claims (Consumer Service Alliance of Texas Inc., et al. v. City of Dallas, Texas, No. 05-13-00255, Texas App., 5th Dist.).

    Mealey's Banking & Finance - Microsoft Wins Dismissal Of California Unfair Competition Claim

    SAN FRANCISCO - Allegations by an inventor that Microsoft Corp. violated California's unfair competition law, Business and Professions Code Section 17200 (UCL), when it "deliberately" encouraged others to infringe his patent and "obstructed and unfairly competed with" his business were dismissed by a California federal judge on May 23 as preempted by the Patent Act (Antonio Medina v. Microsoft Corp. et al., No. 14-143, N.D. Calif.).

    Mealey's Banking & Finance - Bitcoin Investors: CoinLab's Objection To Sunlot Proposal 'Seriously Misplaced'

    DALLAS - Representatives of the class of investors suing bankrupt bitcoin exchange operator MtGox Inc. on May 24 filed a brief in the U.S. Bankruptcy Court for the Northern District of Texas contending that objections filed by creditor CoinLab Inc. in opposition to a portion of the company's proposed reorganization plan "are seriously misplaced" (In Re: MtGox Co. Ltd., No. 14-31229, Chapter 15, N.D. Texas Bkcy.).

    Mealey's Banking & Finance - Judge Awards Summary Judgment To Chase In Unfair Competition Suit

    SANTA ANA, Calif. - A federal judge in California on May 22 awarded summary judgment to JP Morgan Chase Bank N.A. after finding that a man failed to sufficiently allege that he suffered an economic injury as a result of the bank's alleged violation of California Business and Professions Code Section 17200 (Sam Saber v. JP Morgan Chase Bank, N.A., No. SACV 13-00812, C.D. Calif.; 2014 U.S. Dist. LEXIS 71356).

    Mealey's Banking & Finance - 6th Circuit: Man Had Standing To Bring Foreclosure Suit, But Insufficient Claims

    CINCINNATI - A borrower challenging the foreclosure of his Michigan home established standing to bring his lawsuit because it was filed within the six-month redemption period, but failed to sufficiently state claims against his loan servicer and the bank that purchased his home, a Sixth Circuit U.S. Court of Appeals panel ruled May 22 (Abraham Elsheick v. Select Portfolio Servicing Inc., et al., No. 13-2100, 6th Cir.; 2014 U.S. App. LEXIS 9675).

    Mealey's Banking & Finance - Federal Judge Dismisses Suit Against EBay Lending Program

    SALT LAKE CITY - A federal judge in Utah on May 23 granted eBay Inc. and PayPal Inc. affiliate Bill Me Later's (BML) motion to dismiss a putative class action in which a consumer alleges that the interest rates charged to him on a computer purchase were illegal, finding that he inadequately attempted to identify BML as the true lender or real party in interest (Kyle Sawyer v. Bill Me Later, et al., No. 11-0988, D. Utah; 2014 U.S. Dist. LEXIS 71261).

    Mealey's Banking & Finance - High Court Denies Woman's Request To Review Ruling Dismissing Foreclosure Suit

    WASHINGTON, D.C. - The U.S. Supreme Court on May 27 denied a woman's petition to review a Fifth Circuit U.S. Court of Appeals' ruling affirming an award of summary judgment to Wells Fargo Home Mortgage in her lawsuit complaining that the defendant did not have the promissory note and deed of trust when foreclosing on her home (Carol L. Reeves v. Wells Fargo Home Mortgage, et al., No. 13-9264, U.S. Sup.).

    Mealey's Banking & Finance - MF Global SIPA Trustee: More Than $1.99M In Claims Should Be Disallowed

    NEW YORK - The trustee in the Securities Investor Protection Act (SIPA) litigation related to the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investing affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on May 21 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to $1,990,768.53 in claims against the bankruptcy estate, arguing that they should be disallowed (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Banking & Finance - Federal Judge Upholds FDIC's Golden Parachute Determination

    ST. LOUIS - A federal judge in Missouri on May 20 upheld the Federal Deposit Insurance Corp.'s decision that breach of contract damages a former bank executive seeks would constitute a golden parachute payment requiring prior written approval from the FDIC (Jerry Von Rohr v. Reliance Bank, et al., No. 13-0232, E.D. Mo.; 2014 U.S. Dist. LEXIS 68904).

    Mealey's Banking & Finance - Judge: Consumer Failed To State A Claim In Debt Collection Lawsuit

    INDIANAPOLIS - A federal judge in Indiana on May 19 dismissed a consumer's Fair Debt Collection Practices Act (FDCPA) lawsuit against a debt collector, ruling that the consumer failed to state a claim for relief (Patricia Whitlow v. FMS Inc., No. 13-1507, S.D. Ind.; 2014 U.S. Dist. LEXIS 68413).

    Mealey's Banking & Finance - Magistrate Rules On Document Protocol In Coverage Dispute

    LAS VEGAS - Progressive Casualty Insurance Co. must produce certain documents but may apply "privilege filters" to and withhold certain documents, a federal magistrate judge in Nevada ruled May 20 in a suit in which Progressive seeks a declaration that its directors and officers (D&I) policy does not provide coverage for suits the Federal Deposit Insurance Co (FDIC-R)., as the receiver for failed banks, has brought against the former directors and officers of those banks (Progressive Casualty Insurance Co. v. Jackie K. Delaney, et al., No. 11-0678, D. Nev.; 2014 U.S. Dist. LEXIS 69166).

    Mealey's Banking & Finance - Judge Grants Summary Judgment In Fair Debt Collection Practices Act Suit

    ST. LOUIS - A federal judge in Missouri on May 16 granted a debt collector's motion for summary judgment, ruling that a consumer failed to show that the collector's actions in attempting to collect on a debt violated provisions of the Fair Debt Collection Practices Act (FDCPA) (Donna J. May v. NCEP LLC, No. 13-1583, E.D. Mo.; 2014 U.S. Dist. LEXIS 67514).

    Mealey's Banking & Finance - Judge Denies Sanctions Request Against Attorney In Debt Collection Suit

    PHOENIX - A federal judge in Arizona on May 19 ruled that a debt collector is not entitled to sanctions against an attorney representing plaintiffs in an action against it because the debt collector has failed to show that it is entitled to any sanctions (Michael A. Collier, et al. v. Gurstel Chargo PA, No. 12-2161, D. Ariz.; 2014 U.S. Dist. LEXIS 68452).

    Mealey's Banking & Finance - Attorney's Neglect Of UCL Mortgage Action Not Excusable, Magistrate Rules

    SAN FRANCISCO - A couple cannot revive claims that their mortgage lender violated California's unfair competition law (UCL) by misrepresenting the terms of their loan because they did not establish that their failure to prosecute the claims or to timely request that dismissal of the claims be vacated was due to excusable neglect, a federal magistrate judge held May 19 (Marcy Zamora, et al. v. Wells Fargo Bank, N.A., No. 13-00134, N.D. Calif.; 2014 U.S. Dist. LEXIS 68544).

    Mealey's Banking & Finance - Consumer Failed To Plead Debt Collection Law Claims, Federal Judge Rules

    NASHVILLE, Tenn. - A federal judge in Tennessee on May 16 dismissed a consumer's Fair Debt Collection Practices Act (FDCPA) lawsuit against several debt collectors and certain of their agents, ruling that the consumer failed to state a claim for relief (Kimberly Weatherford v. LVNV Funding LLC, et al., No. 13-0885, M.D. Tenn.; 2014 U.S. Dist. LEXIS 67671).

    Mealey's Banking & Finance - Federal Judge Allows Counterclaim To Proceed In Loan Action

    ORLANDO, Fla. - A federal judge in Florida on May 16 denied a motion to dismiss a counterclaim against Branch Banking & Trust Co. (BB&T) in a suit arising from a loan BB&T acquired after the failure of Colonial Bank, finding that Colonial's business recommendations and the financial benefit Colonial received are both sufficiently alleged (Branch Banking and Trust Company v. National Financial Services LLC, et al., No. 13-1983, M.D. Fla.; 2014 U.S. Dist. LEXIS 67554).

    Mealey's Banking & Finance - Federal Judge: FDIC's Lease Repudiation Was Proper

    SPOKANE, Wash. - A federal judge in Washington on May 16 denied a motion to reconsider his summary judgment award to the Federal Deposit Insurance Corp. in a suit arising from property leased by a bank that failed, reiterating that under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), the FDIC has the authority to repudiate contracts and leases (BKWSPOKANE LLC v. Federal Deposit Insurance Corp., et al., No. 12-0521, E.D. Wash.; 2014 U.S. Dist. LEXIS 67967).

    Mealey's Banking & Finance - Judge Limits Consumer's Amendment Of Complaint In Debt Collection Suit

    DETROIT - A federal judge in Michigan on May 15 granted in part and denied in part a consumer's motion to amend his complaint against a debt collector to add claims and defendants in a lawsuit alleging that the debt collector violated provisions of the Fair Debt Collection Practices Act (FDCPA) (Michael Litt v. Midland Credit Management Inc., No. 13-12393, E.D. Mich.; 2014 U.S. Dist. LEXIS 66658).

    Mealey's Banking & Finance - Judge: Property Owner Failed To State Claim Against Foreclosure Trustee

    GREENBELT, Md. - A federal judge in Maryland on May 14 granted a law firm's motion to dismiss a debt collection lawsuit filed by a property owner, ruling that the property owner has failed to state a claim for relief (Dawud Best v. Samuel I. White P.C., No. 13-3164, D. Md.; 2014 U.S. Dist. LEXIS 66458).

    Mealey's Banking & Finance - Federal Judge Rejects Request To Amend Suit Against US Bank

    DENVER - A federal judge on May 15 denied a special district's motion to file an amended complaint against U.S. Bank National Association, which it alleges failed to pay a shortfall amount related to property the bank acquired after the failure of another bank, holding that amending would be "untimely, prejudicial, and futile" (MidCities Metropolitan District No. 1 v. U.S. Bank National Association, No. 12-3322, D. Colo.; 2014 U.S. Dist. LEXIS 66978).

    Mealey's Banking & Finance - 1st Circuit: Debtor's Plan In Chapter 13 Not Feasible Under The Bankruptcy Code

    BOSTON - A panel of the First Circuit U.S. Court of Appeals on May 14 affirmed dismissal of a Chapter 13 debtor's payment plan, ruling that his plan to bifurcate his mortgage loan debt into secured and unsecured portions was not feasible under the Bankruptcy Code (Louis B. Bullard v. Hyde Park Savings Bank [In Re: Louis B. Bullard], No. 13-9009, Chapter 13, 1st Cir.; 2014 U.S. App. LEXIS 8995).

    Mealey's Banking & Finance - ResCap: Bank Of America, Others Sold It 'Defective' Loans, Liable For 'Billions'

    NEW YORK - The ResCap Liquidating Trust, as successor to Residential Funding Co. (RFC), an affiliate of bankrupt Residential Capital LLC (ResCap), on May 13 filed an adversary complaint against Bank of America and another bank in the U.S. Bankruptcy Court for the Southern District of New York, seeking to recover money connected to what it says are "defective" residential mortgage loans Bank of America sold to RFC (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Banking & Finance - Magistrate Judge Stays Debt Collection Suit Pending FCC Ruling

    KANSAS CITY, Kan. - A federal magistrate judge in Kansas on May 14 stayed a consumer lawsuit against a debt collector for alleged violations of the Telephone Consumer Protection Act (TCPA), ruling that the instant action must be stayed under the primary jurisdiction doctrine until the Federal Communications Commission has a chance to make rulings on the issue present in the action (Tamara L. Higgenbotham v. Diversified Consultants Inc., No. 13-2624, D. Kan.; 2014 U.S. Dist. LEXIS 65915).

    Mealey's Banking & Finance - Judge Grants Motion To Compel Arbitration In Debt Collection Suit

    BALTIMORE - A federal judge in Maryland on May 9 granted a debt collector's motion to compel arbitration in a Fair Debt Collection Practices Act (FDCPA) lawsuit, ruling that the claims brought are subject to an arbitration agreement between a consumer and AT&T Wireless (Luciena S. Grant-Fletcher v. Collecto Inc., No. 13-3505, D. Md.; 2014 U.S. Dist. LEXIS 64163).

    Mealey's Banking & Finance - Insurance Company Did Not Breach Bank's Policy, Federal Judge Rules

    NEW YORK - OneBeacon Midwest Insurance Co. did not breach a bank's professional liability insurance policy since claims made by the Federal Deposit Insurance Corp. against the bank's former directors are not "Interrelated Wrongful Acts," a federal judge in New York ruled May 8 (Donald G. Glascoff Jr., et al., v. OneBeacon Midwest Insurance Co., et al., No. 13-1013, S.D. N.Y.; 2014 U.S. Dist. LEXIS 64858).