DENVER - The 10th Circuit U.S. Court of Appeals on Oct. 17 affirmed a lower federal court's entry of summary judgment in favor of an insurer, rejecting the insured's argument that an investigation by the U.S. Securities and Exchange Commission is a claim under its directors and officers liability policy that warrants coverage for all of its $3 million in legal fees (MusclePharm Corporation v. Liberty Insurance Underwriters, Inc., No. 16-1462, 10th Cir., 2017 U.S. App. LEXIS 20233).
SAN FRANCISCO - A California federal judge on Oct. 16 granted a loan servicer's motion to dismiss all of a borrower's claims against it for failure to state a claim but granted him leave to amend his claims for violation of California's unfair competition law (UCL) and negligence (Cristian Alvarado v. 360 Mortgage Group LLC, No. 17-cv-04655, N.D. Calif., 2017 U.S. Dist. LEXIS 171042).
ORLANDO, Fla. - A Florida federal judge on Oct. 13 granted a bank's motion to strike a claim for jury demand as to a claim for violation of federal housing law asserted by former homeowners, finding that the request was prohibited by a waiver in the loan documents (Julie O'Steen, et al. v. Wells Fargo Bank, N.A., et al., No. 6:17-cv-849, M.D. Fla., 2017 U.S. Dist. LEXIS 169344).
SAN FRANCISCO - A substance abuse treatment center's three surviving claims involve a provider-insurer relationship outside ERISA's scope, but the provider's unfair competition law (UCL) claims seek relief available through other means and are not among the surviving causes of action, a federal judge in California held Oct. 10 (Summit Estate Inc. v. Cigna Healthcare of California Inc., et al., No. 17-3871, N.D. Calif., 2017 U.S. Dist. LEXIS 167462).
ATLANTA - The 11th Circuit U.S. Court of Appeals on Oct. 10 affirmed a district court's dismissal of claims for discrimination and breach of contract asserted by a borrower in relation to an alleged loan modification, finding that a lender and loan servicer never offered a modification (Angela Molina v. Aurora Loan Services, LLC, et al., No. 16-17401, 11th Cir., 2017 U.S. App. LEXIS 19744).
CHICAGO - After finding that a borrower's claims related to his requests for a loan modification from a lender were barred by a previous state court foreclosure judgment, an Illinois federal judge on Oct. 10 dismissed his claim for violation of the Real Estate Settlement and Procedures Act (RESPA) (James Alexander Saadi v. Citimortgage Inc., No. 17-1966, N.D. Ill., 2017 U.S. Dist. LEXIS 166986).
SEATTLE - After determining that a property owner and manager engaged in discriminatory housing practices, a Washington federal judge on Oct. 5 awarded a fair housing center $127,302 in actual and punitive damages (Fair Housing Center of Washington v. Breier-Scheetz Properties LLC, et al., No. 16-922, W.D. Wash., 2017 U.S. Dist. LEXIS 165543).
SEATTLE - The Ninth Circuit U.S. Court of Appeals on Oct. 5 rejected an appeal of a court's decision to dismiss their claims against lenders under Washington law, finding that borrowers failed to show that any allegedly unfair actions committed by the lenders caused them to suffer an injury (Stephanie Tashiro-Townley, et al. v Bank of America New York Mellon Corp., et al., No. 16-35590, 9th Cir., 2017 U.S. App. LEXIS 19508).
SAN DIEGO - After finding that a borrower failed to show that he would likely succeed on the merits of his petition before an appeals court for review of an order denying his requests for discovery regarding his mortgage, a California federal judge on Oct. 4 refused to stay the case pending the outcome of the petition (Norman Shaw v. Bank of America, et al., No. 12-cv-1207, S.D. Calif., 2017 U.S. Dist. LEXIS 164794).
BOSTON - The First Circuit U.S. Court of Appeals on Sept. 29 affirmed a district court's decision to dismiss a borrower's claim for violation of Massachusetts' predatory lending law, finding that the claim was barred by a five-year statute of limitations (John Rife v. One West Bank, F.S.B., et al., No. 16-1305, 1st Cir., 2017 U.S. App. LEXIS 18889).
SAN DIEGO - Allegations that an emergency health care provider touted its compassion toward those with gender dysphoria and then repeatedly referred to a transgender boy as female support his mother's Patient Protection and Affordable Care Act (ACA) and California unfair competition law claims, a federal judge in California held Sept. 27 (Katharine Prescott, et al. v. Rady Children's Hospital - San Diego, No. 16-2408, S.D. Calif., 2017 U.S. Dist. LEXIS 160259).
ATLANTA - After determining that a property foreclosure never actually occurred, the 11th Circuit U.S. Court of Appeals on Sept. 26 affirmed a district court's decision dismissing a complaint filed by borrowers seeking injunctive relief against various lenders (Jorge E. Espinoza v. Countrywide Home Loans Servicing LP, et al., No. 14-13933, 11th Cir., 2017 U.S. App. LEXIS 18566).
HOUSTON - A Texas federal judge on Sept. 26 granted a lender's motion for summary judgment on claims related to a foreclosure of a property, finding that a previous lawsuit filed by the borrowers involved the same claims and parties and barred the current action (Rafael F. Vazquez, et al. v. Selene Finance L.P., et al., No. 17-1793, S.D. Texas, 2017 U.S. Dist. LEXIS 156968).
BALTIMORE - After finding that a borrower's claims related to a lender's alleged fraud-for-profit scheme was barred by a statute of limitations and that he failed to assert facts to support his other allegations, a Maryland federal judge on Sept. 25 granted dismissal of the case in favor of a bank (Kwame Taylor v. M&T Bank, et al., 17-2434, D. Md., 2017 U.S. Dist. LEXIS 156080).
ATLANTA - A class action brought by a group of financial institutions (FIs) over a 2014 data breach experienced by Home Depot Inc. came to a close Sept. 22, when a Georgia federal judge granted final approval of a settlement that includes enhanced data security procedures by the home improvement chain and a $25 million settlement fund (In re: Home Depot Inc., Customer Data Security Breach Litigation, No. 1:14-md-02583, N.D. Ga.).
PITTSBURGH - In a mortgage insurance reinsurance scheme case, mortgagors and a reinsurer are not entitled to judgment on a Real Estate Settlement Procedures Act (RESPA) claim under Third Circuit U.S. Court of Appeals law, homeowners say in a brief filed Sept. 19 in a Pennsylvania federal court (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2017 U.S. Dist. LEXIS 86380).
ISLIP, N.Y. - After finding that a borrower was not a consumer under the Fair Debt Collection Practices Act (FDCPA), a New York federal judge on Sept. 19 dismissed her complaint against a loan servicer in relation to a notice and default letter (Janine Carbone v. Caliber Home Loans Inc., No. 15-5190, E.D. N.Y., 2017 U.S. Dist. LEXIS 151810).
RENO, Nev. - A Nevada federal judge on Sept. 20 granted summary judgment in favor of a loan servicer, finding that a homeowners association foreclosure sale was based on an unconstitutional statute and did not extinguish the servicer's deed on the property (Green Tree Servicing LLC, et al. v. Rainbow Bend Homeowners Association, et al., No. 3:15-cv-00297, D. Nev., 2017 U.S. Dist. LEXIS 152686).
NEWARK, N.J. - A New Jersey federal judge on Sept. 18 found that a bank involved in a corporate merger has a right to reimbursement under a directors and officers liability insurance policy for its post-merger defense costs vis-a-vis the independent directors involved in a shareholder class action (BCB Bancorp, Inc., et al. v. Progressive Casualty Insurance Co., et al., No. 13-1261, D. N.J., 2017 U.S. Dist. LEXIS 151415).
PROVIDENCE, R.I. - After finding that a lender breached the terms of a mortgage, a Rhode Island federal judge on Sept. 15 denied its counterclaim for an order allowing judicial foreclosure and granted summary judgment in favor of the borrowers (Nancy A. Boynton, et al. v. Federal Housing Finance Agency, et al., No. 15-350, D. R.I., 2017 U.S. Dist. LEXIS 150442).
GREENVILLE, S.C. - After finding that a borrower's request for an injunction barring lenders from taking any foreclosure-related action against her property was prohibited by the Anti-Injunction Act, a South Carolina federal judge on Sept. 14 adopted a magistrate's judge's recommendation to dismiss the case (Tracy Ligget v. Fifth Third Mortgage, et al., No. 7:16-4011, D. S.C., 2017 U.S. Dist. LEXIS 148882).
OAKLAND, Calif. - After finding that the majority of a borrower's claims for violation of California's unfair competition law (UCL) in relation to a bank's collection of mortgage post-payment interest were properly pleaded, a California federal judge on Sept. 11 denied the majority of the bank's motion to dismiss the borrower's complaint (Vana Fowler v. Wells Fargo Bank, N.A., No. 17-cv-02092, N.D. Calif., 2017 U.S. Dist. LEXIS 146732).
NEW YORK - After finding that several lenders failed to demonstrate a likelihood of harm, a New York federal judge on Sept. 11 denied their request for a preliminary injunction, seeking court oversight or the the appointment of a special master to oversee a bank's actions in relation to loans that are subject to underlying litigation (Mortgage Resolution Servicing LLC, et al. v. JPMorgan Chase Bank, N.A., No. 15-293, S.D. N.Y., 2017 U.S. Dist. LEXIS 147291).
ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on Sept. 7 affirmed a trial court's decision, finding that it did not err in refusing to remand and dismissing a borrower's claims related to the foreclosure of his property (Derek Quinn v. Ocwen Loan Servicing LLC, et al., No. 16-17442, 11th Cir., 2017 U.S. App. LEXIS 17305).
SAN JOSE, Calif. - After finding that a borrower failed to allege facts to support his claims for violation of California's unfair competition law (UCL) and civil code, a California federal judge on Sept. 6 granted a bank's motion to dismiss the claims with leave to amend (Chris Monet v. JPMorgan Chase Bank, N.A., et al., No. 17-CV-00623, N.D. Calif., 2017 U.S. Dist. LEXIS 143419).