SACRAMENTO, Calif. - A California federal magistrate judge on July 14 dismissed claims asserted by a borrower against a loan servicer but granted him leave to amend his claim for violation of the Real Estate Settlement Procedures Act (RESPA) and to pursue a claim under California's unfair competition law (UCL) (Frank Malifrando v. Real Time Resolutions Inc., et. al., No. 2:16-cv-0223, E.D. Calif.; 2016 U.S. Dist. LEXIS 91739).
NEW YORK - A New York federal judge on July 12 held that a directors and officers liability insurance policy's professional services exclusion unambiguously bars coverage for claims in an underlying Facebook IPO class action lawsuit but refused to grant summary judgment to the primary D&O insurer on a breach of contract claim involving the advancement of underlying defense costs (Beazley Insurance Co. Inc. v. ACE American Insurance Co., et al., No. 15-5119, S.D. N.Y.; 2016 U.S. Dist. LEXIS 90332).
CHICAGO - An Illinois federal judge on July 11 denied a motion by Santander Consumer USA Inc. to dismiss the Fair Debt Collection Practices Act (FDCPA) claim in a class suit accusing it of hounding debtors by phone and then charging them excessive fees for payments made over the phone or online (Cheryl Johnson-Morris, et al. v. Santander Consumer USA, Inc., No. 16-1456, N.D. Ill.; 2016 U.S. Dist. LEXIS 89081).
COLUMBUS, Ohio - An Ohio federal judge on July 12 found that a property owner's claims for violation of the Truth in Lending Act (TILA) and other causes of action in relation to a foreclosure case were barred by res judicata (A. Jubal Harris v. US Bank National Association, et al., No. 2:15-CV-2981, S.D. Ohio; 2016 U.S. Dist. LEXIS 90206).
ATLANTA - A unanimous Georgia Supreme Court on July 8 reversed an appellate panel's decision finding that a bank's arbitration clause, which only permits an individual depositor to reject arbitration on his or her own behalf, prevents a class representative from suing on behalf of class members (Bickerstaff v. SunTrust Bank, No. S15G1295, Ga. Sup.; 2016 Ga. LEXIS 469).
LAS VEGAS - A Nevada federal judge on July 6 granted a loan servicer's motion to dismiss claims filed by property owners in relation to a loan modification, finding that allegations related to foreclosure documentation failed to state a claim under Nevada law (Judith Beebe, et al. v. New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing, No. 2:15-CV-2164, D. Nev.; 2016 U.S. Dist. LEXIS 87324).
ATLANTA - The 11th Circuit U.S. Court of Appeals on June 30 affirmed a trial court's decision to grant summary judgment in favor of a bank, finding that the bank had standing to foreclose and that claims asserted by borrowers had previously been litigated (Andrzej Madura, et al. v. BAC Home Loans Servicing LP, f.k.a. Countrywide Home Loans Servicing LP, et al., No. 15-10090, 11th Cir.; 2016 U.S. App. LEXIS 12048).
NEW YORK - The Second Circuit U.S. Court of Appeals on June 29 affirmed a trial court's decision that a bank had standing to foreclose on a property and found that it did not err in granting summary judgment for the bank (OneWest Bank N.A. v. Robert W. Melina, et al., No. 15-3063, 2nd Cir.; 2016 U.S. App. LEXIS 11862).
NEWARK, N.J. - A New Jersey federal judge on June 28 refused to dismiss a borrower's claim against a bank for violation of the Real Estate Settlement Procedures Act (RESPA) in relation to her request for a loan modification and reserved judgment on various state law claims pending the outcome of her request for an injunction (Edyta Rojecki v. Bank of America, N.A., et al., No. 15-8160, D. N.J.; 2016 U.S. Dist. LEXIS 83434).
CHICAGO - The Seventh Circuit U.S. Court of Appeals on June 27 affirmed a district court's judgment in favor of a residential mortgage lender, finding that it was not liable to pay another lender that acted as a sponsor for a mortgage-related computer program fees that it incurred (Nationwide Advantage Mortgage Co. v. GSF Mortgage Corp., No. 15-3361, 7th Cir.; 2016 U.S. App. LEXIS 11699).
NEW HAVEN, Conn. - A Connecticut federal judge granted judgment in favor of an insurer on June 27 in a lawsuit seeking recovery of more than $5 million in missing bank cash (Known Litigation Holdings, LLC v. Navigators Insurance Co., et al., No. 12-269, D. Conn.; 2016 U.S. Dist. LEXIS 82675).
BOSTON - The First Circuit U.S. Court of Appeals on June 21 affirmed a district court's decision to grant summary judgment in favor of several lenders, finding that property owners did not suffer irreparable harm when the court refused to grant them an injunction prohibiting foreclosure because the sale had already been canceled (Thomas Frangos, et al. v. Bank of America N.A., et al., No. 15-2494, 1st Cir.; 2016 U.S. App. LEXIS 11203).
HOUSTON - A Texas federal judge on June 21 held that an insured did not "own" its lost earnings stemming from a Ponzi scheme within the meaning of a commercial crime insurance policy (Cooper Industries, Ltd., et al v. National Union Fire Insurance Company of Pittsburgh Pa., No. 12-01591, S.D. Texas; 2016 U.S. Dist. LEXIS 80342).
HARRISONBURG, Va. - After finding that a borrower failed to submit any facts to support her claims, a Virginia federal judge on June 16 granted a motion filed by lenders and others to dismiss claims for violation of the Truth In Lending Act (TILA) and other causes of action (Marsha Lambert Maines v. Ronald J. Guillot Jr., et al., No. 5:16CV00009, W.D. Va.; 2016 U.S. Dist. LEXIS 79477).
OAKLAND, Calif. - A California federal magistrate judge on June 20 granted a bank's motion to dismiss claims asserted against it by borrowers, finding that their claims for rescission of the loan under the Truth In Lending Act (TILA) were barred by a three-year statute of limitations (Muhamed Almutarreb, et al. v. Nationstar Mortgage Holdings, No. 15-cv-05207, N.D. Calif.; 2016 U.S. Dist. LEXIS 80034).
LOS ANGELES - A California federal judge on June 20 found that claims asserted against numerous mortgage lenders for violation of California law must be dismissed for lack of jurisdiction (Mattie Belinda Evans v. Bank of America, N.A., et al., No. 16-4147, C.D. Calif.; 2016 U.S. Dist. LEXIS 80001).
SAN DIEGO - In what is being called a record recovery for shareholders, HSBC Finance Corp. has agreed to pay more than $1.5 billion to settle claims that its predecessor-in-interest, Household International Inc., and certain of its executive officers and directors issued a series of misrepresentations concealing Household's involvement in a predatory lending scheme in violation of federal securities laws, according to a press release issued by shareholder counsel June 16 (Lawrence E. Jaffe Pension Plan v. Household International, Inc., et al., No. 02-5893, N.D. Ill.).
LOS ANGELES - After finding that a borrower attempted to fulfill the terms of an agreement with a bank, a California federal judge on June 15 refused to dismiss her breach of contract claims but granted dismissal as to her claims for rescission and violation of California's unfair competition law (UCL) (Kathleen Angel Eisenberg v. Citibank N.A., et al., No. 2:13-CV-01814, C.D. Calif.; 2016 U.S. Dist. LEXIS 78710).
SELMA, Ala. - After finding that a bank missed the deadline for amending its notice of removal of a case in which the claimant asserts that it violated the Fair Debt Collection Practices Act (FDCPA), an Alabama federal judge on June 9 denied its request to amend the parties on the notice (Ashley Gill, as administratix of the Estate of Marshall Gill v. Wells Fargo Bank, N.A., No. 2:15-00162, S.D. Ala.; 2016 U.S. Dist. LEXIS 75188).
DENVER - The 10th Circuit U.S. Court of Appeals on June 3 affirmed a bankruptcy court's decision that a mortgage and assignments were enforceable (In re: Ralph Gifford, et al. v. Bank of America, N.A., successor by merger to BAC Homes Loans Servicing L.P., No. 15-8097, 10th Cir.; 2016 U.S. App. LEXIS 10174).
SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 6 held that an insured failed to demonstrate that securities violations claims against it fell under a directors, officers and corporate liability insurance policy's exception to the "insured v. insured" exclusion, affirming a lower federal court's dismissal of the insured's breach of contract and bad faith lawsuit against its insurer (AMERCO v. National Union Fire Insurance Company of Pittsburgh PA, No. 14-16041, 9th Cir.; 2016 U.S. App. LEXIS 10209).
ATLANTA - The 11th Circuit U.S. Court of Appeals on June 3 affirmed a district court's decision to dismiss a case related to a property foreclosure as barred by res judicata (Rosena McNear v. Wells Fargo Bank N.A., as Trustee for the Certificateholders of Securitized Asset Banked Receivables, LLC, et al., No. 15-13214, 11th Cir.; 2016 U.S. App. LEXIS 10123).
NEWARK, N.J. - A New Jersey federal judge on June 2 granted a bank's motion to dismiss an amended complaint filed against it in relation to a mortgage on a property, finding that a borrower failed to state a claim on which relief could be granted (Ruben Martinez v. Capital One Financial Corp., No. 15-266, D. N.J.; 2016 U.S. Dist. LEXIS 71708).
WASHINGTON, D.C. - Eight financial institutions will pay a combined $190 million to settle claims that they issued misrepresentations concealing the true investment quality of Countrywide Financial Corp. residential mortgage-backed securities (RMBSs) in violation of state and federal securities laws, according to a press release issued on June 2 by the Federal Deposit Insurance Corp. (FDIC).
TROY, Mich. - A Michigan federal judge on May 31 granted a motion for judgment in favor of a bank on certain claims related to an alleged wrongful foreclosure, but allowed claims for violation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) to proceed (Charles J. Beard v. HSBC Mortgage Services, Inc., No. 1:15-CV-1232, W.D. Mich.; 2016 U.S. Dist. LEXIS 70489).