LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Home Builder Removes Class Action Suit Over Stucco, Says Damages Exceed $5M

ORLANDO, Fla. - Centex Real Estate Co. LLC on June 11 removed a class action suit accusing the builder and contractors of improperly installing the stucco on 137 homes in an Apopka, Fla., development, arguing that the federal court has jurisdiction over the case under the Class Action Fairness Act (CAFA) because the proposed class seeks more than $5 million in damages (Emerson Park Homeowners Association Inc., et al. v. Brett Lundequam, et al., No. 18-CV-913-ORL-37-DCI, M.D. Fla.).

Mealey's Antitrust/Unfair Competition - Judge Holds Bank's Response To Borrower Was Sufficient, Dismisses Complaint

SAN DIEGO - After finding that a bank's response to a borrower's qualified written request was sufficient and that missing information from loan modification documents would not stop foreclosure, a California federal judge on May 25 dismissed a borrower's claims for violation of California's unfair competition law (UCL), the Real Estate Settlement and Procedures Act (RESPA) and other causes of action (Robert Vaughn v. Wells Fargo Bank, et al., No. 17-cv-2365, S.D. Calif., 2018 U.S. Dist. LEXIS 88518).

Mealey's Banking & Finance - Judge Holds Bank's Response To Borrower Was Sufficient, Dismisses Complaint

SAN DIEGO - After finding that a bank's response to a borrower's qualified written request was sufficient and that missing information from loan modification documents would not stop foreclosure, a California federal judge on May 25 dismissed a borrower's claims for violation of California's unfair competition law (UCL), the Real Estate Settlement and Procedures Act (RESPA) and other causes of action (Robert Vaughn v. Wells Fargo Bank, et al., No. 17-cv-2365, S.D. Calif., 2018 U.S. Dist. LEXIS 88518).

Mealey's Insurance - Federal Judge Upholds Dismissal Of RESPA Claims Against Banks, Reinsurer

PHILADELPHIA - A Pennsylvania federal judge on May 24 refused to reconsider his ruling dismissing claims for violations of the Real Estate Settlement Procedures Act (RESPA) and unjust enrichment filed by homeowners in a putative class action alleging a captive reinsurance scheme between banks and an affiliated reinsurer (Christopher Blake, et al. v. JPMorgan Chase Bank, N.A., et al., No. 13-6433, E.D. Pa., 2018 U.S. Dist. LEXIS 87428).

Mealey's Antitrust/Unfair Competition - Judge Grants Dismissal Of Claims That Wells Fargo Wrongly Charged Fees

SAN FRANCISCO - A California federal judge on May 14 found no facts to support causes of action asserted by a first-time homebuyer who alleged that Wells Fargo & Co. violated the Real Estate Settlement and Procedures Act (RESPA) and California's unfair competition law (UCL) when it improperly charged borrowers mortgage interest rate-lock fees, dismissing his claims with partial leave to amend (Victor Muniz v. Wells Fargo & Co., et al., No. 3:17-cv-04995, N.D. Calif., 2018 U.S. Dist. LEXIS 81040).

Mealey's Banking & Finance - Judge Grants Dismissal Of Claims That Wells Fargo Wrongly Charged Fees

SAN FRANCISCO - A California federal judge on May 14 found no facts to support causes of action asserted by a first-time homebuyer who alleged that Wells Fargo & Co. violated the Real Estate Settlement and Procedures Act (RESPA) and California's unfair competition law (UCL) when it improperly charged borrowers mortgage interest rate-lock fees, dismissing his claims with partial leave to amend (Victor Muniz v. Wells Fargo & Co., et al., No. 3:17-cv-04995, N.D. Calif., 2018 U.S. Dist. LEXIS 81040).

Mealey's Securities/D&O Liability - 2nd Circuit Panel Upholds Summary Judgment Ruling In Securities Suit

NEW YORK - A federal district court properly found that victims of a real estate investment scheme pleaded reliance, loss causation and scienter in claiming that an investment adviser misrepresented key aspects of the scheme to investors in violation of federal securities laws, a Second Circuit U.S. Court of Appeals panel ruled May 9 in affirming (Scott Charney, et al. v. Jennifer S. Wilkov, et al., No. 16-3239, 2nd Cir., 2018 U.S. App. LEXIS 12120).

Mealey's Litigation Procedure - PCA Issues Award In UNCITRAL Arbitration Filed Against Russia

THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on May 9 announced that it has issued a confidential award on the merits in an arbitration commenced by real estate investors against the Russian Federation (Everest Estate LLC, et al. v. The Russian Federation, No. 2015-36, PCA).

Mealey's Insurance - Other Business Entities Exclusion Bars Professional Liability Coverage, Panel Says

LOS ANGELES - A California appeals panel on April 26 affirmed a court's ruling that an accountant's professional liability insurance policy's "Other Business Entities" exclusion unambiguously bars coverage for underlying claims arising from a real estate venture (Martin Leffler v. Camico Mutual Insurance Company, Inc., No. B269275, Calif App., 2nd Dist., Div. 5, 2018 Cal. App. Unpub. LEXIS 2889).

Mealey's Banking & Finance - 11th Circuit Affirms Dismissal Of Claims Related To Loan Assignment

ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 22 affirmed a district court's ruling dismissing causes of action for violation of the Truth In Lending Act (TILA), the Real Estate Settlement and Procedures Act (RESPA) and other claims asserted by a borrower against a bank and loan servicer, finding that the claims were barred by collateral estoppel or were abandoned on appeal (Hussain Kareem v. Ocwen Services LLC, et al., No. 16-15589, 11th Cir., 2018 U.S. App. LEXIS 1761).

Mealey's Banking & Finance - 6th Circuit Deems RESPA, Other Claims Abandoned On Appeal

CINCINNATI - After finding that a borrower failed to raise any new arguments on appeal, the Sixth Circuit U.S. Court of Appeals on Jan. 18 affirmed a district court's decision finding no evidence to support a claim for violation of the Real Estate Settlement Procedures Act (RESPA) and other causes of action asserted against a loan servicer (Tiffany Wiggins v. Ocwen Loan Servicing LLC, No. 17-1228, 6th Cir., 2018 U.S. App. LEXIS 1153).

Mealey's Banking & Finance - Judge Grants Judgment To Mortgagors, Reinsurer On RESPA, Unjust Enrichment Claims

PITTSBURGH - In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on Jan. 19 granted judgment on the pleadings to mortgagors and a reinsurer with regard to a Real Estate Settlement Procedures Act (RESPA) claim and an unjust enrichment claim (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2018 U.S. Dist. LEXIS 8648).

Mealey's Insurance - Judge Grants Judgment To Mortgagors, Reinsurer On RESPA, Unjust Enrichment Claims

PITTSBURGH - In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on Jan. 19 granted judgment on the pleadings to mortgagors and a reinsurer with regard to a Real Estate Settlement Procedures Act (RESPA) claim and an unjust enrichment claim (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2018 U.S. Dist. LEXIS 8648).

Mealey's Banking & Finance - Judge Finds Lender's Duty To Respond Was Not Triggered Under RESPA

SACRAMENTO, Calif. - A California federal judge on Jan. 11 granted a lender's motion to dismiss causes of action for violation of the unfair competition law (UCL), the Real Estate Settlement and Procedures Act (RESPA) and other claims, finding that a borrower's communications about the origination of her loan did not trigger the lender's duty to respond under RESPA (Susan Ann Feighery, et al. v. Ditech Financial LLC, No. 2:17-cv-01473, E.D. Calif., 2018 U.S. Dist. LEXIS 5472).

Mealey's Insurance - Wisconsin Panel Says Policy Clearly Bars Coverage For Mold Damages

WAUKESHA, Wis. - The Second District Wisconsin Court of Appeals on Dec. 13 affirmed that a trial court correctly entered judgment for an insurer in a suit seeking damages as a result of injuries caused by mold contamination in a rented apartment because the policy at issue clearly bars coverage for mold damages and mold-related injuries (Susan M. Smith v. Mumm Real Estate LLC, No. 2016AP1944, Wis. App., Dist. 2, 2017 Wisc. App. LEXIS 1039).

Mealey's Litigation Procedure - PCA To Issue Award, Asks Russia And Investors Questions On Quantum

THE HAGUE, Netherlands - In preparation for the issuance of a final award in a treaty dispute over real estate investments in Crimea, the Permanent Court of Arbitration (PCA) on Dec. 13 announced that it has posed certain questions to the investors and the Russian Federation in relation to responsibility and quantum (Lugzor LLC, et al. v. The Russian Federation, No. 2015-29, PCA).

Mealey's Antitrust/Unfair Competition - Judge Finds Late Fees Charged For Apartment Rental Did Not Violate UCL

SAN DIEGO - A California federal judge on Dec. 1 granted a motion to dismiss claims for violation of California's unfair competition law (UCL) and a claim related to debt collection asserted against landlords, finding that their alleged practice of charging late fees was neither unfair nor fraudulent and that the late fees did not constitute debt collection (Jordan Kohler v. Greystar Real Estate Partners, LLC, et al., No. 15cv2195, S.D. Calif., 2017 U.S. Dist. LEXIS 198151).

Mealey's Banking & Finance - 5th Circuit Finds Loan Transaction Was Not Void, Affirms Dismissal

NEW ORLEANS - After finding that a borrower failed to show that the sale of a mortgage between lenders was void, the Fifth Circuit U.S. Court of Appeals on Dec. 1 affirmed a district court's summary judgment ruling for the lenders (David Johnson v. Real Estate Mortgage Network, et al., No. 17-20347, 5th Cir., 2017 U.S. App. LEXIS 24369).

Mealey's Banking & Finance - 9th Circuit Finds No Support For RESPA, FDCPA Claims Against Wells Fargo

SEATTLE - The Ninth Circuit U.S. Court of Appeals on Oct. 26 affirmed a district court's decision to dismiss claims for violation of the Fair Debt Collection Practices Act (FDCPA) and the Real Estate Settlement Procedures Act (RESPA) asserted against a bank, finding that a borrower failed to show that any issues of material dispute existed as to the owner of the mortgage note (Frederick T. Brewster v. Wachovia Mortgage, FSB, et al., No. 12-35490, 9th Cir., 2017 U.S. App. LEXIS 21287).

Mealey's Litigation Procedure - PCA Holds Merits Hearing In Real Estate Investment Arbitration Against Russia

THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on Oct. 26 announced several updates in an arbitration commenced by real estate investors against the Russian Federation, noting that it recently held a hearing on the merits and that Russia has yet to participate in the case (Everest Estate LLC, et al. v. The Russian Federation, No. 2015-36, PCA).

Mealey's Banking & Finance - Florida Federal Judge Finds Facts To Support RESPA, FDCPA Claims

JACKSONVILLE, Fla. - After finding that a borrower sufficiently pleaded facts to support her causes of action for violation of the Real Estate Settlement and Procedures Act (RESPA) and other claims against a loan servicer in relation to her mortgage, a Florida federal judge on Oct. 24 refused to dismiss the borrower's amended complaint (Mary R. Johnson v. Specialized Loan Servicing LLC, et al., No. 3:16-cv-178, M.D. Fla., 2017 U.S. Dist. LEXIS 176142).

Mealey's Banking & Finance - Federal Judge Dismisses RESPA Claim As Barred By State Court Ruling

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).

Mealey's Litigation Procedure - Panel Finds Servicer's Response To Borrower Did Not Violate RESPA

ATLANTA - After finding that a borrower failed to show that a loan servicer's response to her request for information regarding her loan did not violate the Real Estate Settlement Procedures Act (RESPA), the 11th Circuit U.S. Court of Appeals on Sept. 22 affirmed a summary judgment ruling for the servicer (Jaki Baez v. Specialized Loan Servicing LLC, No. 16-17292, 11th Cir., 2017 U.S. App. LEXIS 18362).

Mealey's Banking & Finance - Homeowners Say Reinsurer, Mortgagors Are Not Entitled To Judgment On RESPA Claim

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).

Mealey's Insurance - Homeowners Say Reinsurer, Mortgagors Are Not Entitled To Judgment On RESPA Claim

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).