LexisNexis® Legal Newsroom
Mealey's Banking & Finance - 6th Circuit Affirms Dismissal Of RESPA And HAMP Claims Against Lender

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Sept. 28 affirmed a district court's dismissal of claims asserted by property owners against a bank, finding that the Real Estate Settlement Procedures Act (RESPA) was not in effect at the relevant time and that the Home Affordable Mortgage Program (HAMP) does not impose a legal duty of care on lender (Roderick Ray, et al. v. U.S. Bank National Association, Successor Trustee to Bank of America, Successor by Merger to LaSalle Bank, N.A., No. 15-1241, 6th Cir.; 2015 U.S. App. LEXIS 17220).

Mealey's Banking & Finance - Federal Judge Allows FDCPA Claims Against Loan Servicer To Proceed

FORT LAUDERDALE, Fla. - A Florida federal judge on Sept. 28 found that a borrower failed to submit evidence to support his claim for violation of the Real Estate Settlement Procedures Act (RESPA) but allowed his claims against a loan servicer for violation of the Fair Debt Collection Practices Act (FDCPA) and another claim to proceed (Alex Rodriguez v. Seterus Inc., No. 15-61253, S.D. Fla.; 2015 U.S. Dist. LEXIS 130172).

Mealey's Banking & Finance - Judge: Insurer Has Duty To Defend, Indemnify Against Claims Insured Misused Funds

CHICAGO - An Illinois federal judge held on Sept. 24 that an insurer has a duty to defend or indemnify its insured against underlying claims that its insured misused and misappropriated funds involving real estate closing, loan closing and title and escrow services (Title Industry Assurance Co. v. Chicago Abstract Title Agency, et al., No. 14-1906, N.D. Ill.; 2015 U.S. Dist. LEXIS 128096).

Mealey's Insurance - Judge: Insurer Has Duty To Defend, Indemnify Against Claims Insured Misused Funds

CHICAGO - An Illinois federal judge held on Sept. 24 that an insurer has a duty to defend or indemnify its insured against underlying claims that its insured misused and misappropriated funds involving real estate closing, loan closing and title and escrow services (Title Industry Assurance Co. v. Chicago Abstract Title Agency, et al., No. 14-1906, N.D. Ill.; 2015 U.S. Dist. LEXIS 128096).

Mealey's Insurance - Judge: Primary Insurer Owes Excess Insurer $7.9M In Underlying Defense Costs

CLEVELAND - An Ohio federal judge held Aug. 28 that a primary insurer is liable under the principles of equity to reimburse an excess insurer for the $7,996,655.57 in defense costs it was ordered to pay to their insured in connection with an underlying lawsuit arising from a failed real estate project in Orlando, Fla. (IMG Worldwide Inc., et al. v. Westchester Fire Insurance Co., No. 11-1594, N.D. Ohio, Eastern Div.; 2015 U.S. Dist. LEXIS 114659).

Mealey's Banking & Finance - Judge Finds Servicing Company's Request To Transfer RESPA Claim Is Moot

DENVER - A Colorado federal judge on Aug. 26 denied a loan servicing company's request to transfer a borrower's lawsuit, which asserts a cause of action for violation of the Real Estate Settlement Procedures Act (RESPA), to a bankruptcy court, finding that its arguments were moot or inappropriate (Christine Warren v. Green Tree Servicing LLC, No. 14-cv-02241, D. Colo.; 2015 U.S. Dist. LEXIS 114978).

Mealey's Banking & Finance - 3rd Circuit Affirms Dismissal Of TILA And RESPA Claims, Remands

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Aug. 24 affirmed dismissal of claims asserted by borrowers for violation of the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA) and other claims, but remanded the case so that they can have the chance to amend their complaint (Nina Shahin, et al. v. PNC Bank, Local Branch at 87 Greentree Driver, Dover, DE 19904, et al., No. 15-1405, 3rd Cir.; 2015 U.S. App. LEXIS 14836).

Mealey's Banking & Finance - Federal Judge Dismisses RESPA And Damages Claims, Grants Leave To Amend

WEST PALM BEACH, Fla. - A Florida federal judge on July 27 found that a borrower's claims for violation of the Real Estate Settlement Procedures Act (RESPA) were valid but that her damages claims failed and that the case should be dismissed with leave to replead (Elina Zaychick v. Bank of America, N.A., No. 9:15-CV-80336, S.D. Fla.; 2015 U.S. LEXIS 97514).

Mealey's Banking & Finance - Endorsement Bars Coverage For Negligence Claim Against Realtor, Panel Says, Reverses

INDIANAPOLIS - An Indiana appeals panel on July 22 found that a business owners insurance policy's "limitation of real estate operations" endorsement precludes coverage for an underlying negligence suit against a real estate listing agent insured, reversing and remanding a lower court's ruling against the insurer (Property-Owners Insurance Co. v. Gerald T. Powers and Phyllis J. Powers, et al., No. 73A05-1501-PL-2, Ind. App.; 2015 Ind. App. Unpub. LEXIS 826).

Mealey's Bankruptcy - Energy Future Holdings Proposes 2 Options For Reorganizing

WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on July 23 filed an amended plan of reorganization that includes two options for emerging from bankruptcy, with the company favoring a plan that includes $12.1 billion of new debt and equity arranged by an ad hoc group and the conversion of EFH into a real estate investment trust (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

Mealey's Insurance - Endorsement Bars Coverage For Negligence Claim Against Realtor, Panel Says, Reverses

INDIANAPOLIS - An Indiana appeals panel on July 22 found that a business owners insurance policy's "limitation of real estate operations" endorsement precludes coverage for an underlying negligence suit against a real estate listing agent insured, reversing and remanding a lower court's ruling against the insurer (Property-Owners Insurance Co. v. Gerald T. Powers and Phyllis J. Powers, et al., No. 73A05-1501-PL-2, Ind. App.; 2015 Ind. App. Unpub. LEXIS 826).

Mealey's IP/Tech - Louisiana Federal Judge Denies Dismissal Of 'Audobon' Trademark Case

BATON ROUGE, La. - A complaint seeking a declaration of noninfringement in connection with the use of the "Audobon" trademark is adequately pleaded to survive a defense motion to dismiss, a Louisiana federal judge ruled July 7 (Audobon Real Estate Associates L.L.C. v. Audobon Realty L.L.C., No. 15-115, M.D. La.; 2015 U.S. Dist. LEXIS 87758).

Mealey's Insurance - No Coverage Owed For Failure To Disclose Home Was Built On Dump Pit, Judge Says

TAMPA, Fla. - No coverage is afforded for an underlying suit alleging that an insured real estate agent failed to disclose that the ground upon which a home was built once served as a neighborhood dumping pit because the nondisclosure did not cause the property damage and the policies' pollution exclusions bar coverage, a Florida federal judge said July 6 (Southern-Owners Insurance Co., et al. v. Yvonne Herrera, et al., No. 13-2887, M.D. Fla.; 2015 U.S. Dist. LEXIS 87420).

Mealey's Banking & Finance - Federal Judge Finds Borrower's TILA And RESPA Claims Can Proceed

FRESNO, Calif. - In an initial screening order, a California federal judge on June 19 found that a borrower's claims against a bank for violation of the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) can proceed (Jeffrey Wayne Taylor v. Chase Bank, No. 1:13-cv-00982, E.D. Calif.; 2015 U.S. Dist. LEXIS 79978).

Mealey's Insurance - Panel: Insurer Has Duty To Defend Negligence Claim Against Additional Insured

RICHMOND, Va. - An insurer has a duty to defend allegations that an additional insured's negligence caused a building collapse, the Fourth Circuit U.S. Court of Appeals ruled June 10, finding that the scope of coverage under an endorsement extends beyond acts or omissions of the named insured for which the additional insured was vicariously liable (Capital City Real Estate LLC v. Certain Underwriters at Lloyd's London, subscribing to Policy Number: ARTE018240, No. 14-1239, 4th Cir.; 2015 U.S. App. LEXIS 9662).

Mealey's Banking & Finance - 11th Circuit Affirms Dismissal Of Claims Under Rooker-Feldman

ATLANTA - After finding that a district court properly found that it lacked jurisdiction over numerous claims asserted by borrowers, including causes of action for violation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), the 11th Circuit U.S. Court of Appeals on June 8 affirmed dismissal of the case (Leonardo Cavero, et al. v. One West Bank FSB, et al., No. 14-14369, 11th Cir.; 2015 U.S. App. LEXIS 9464).

Mealey's Insurance - Stipulated Judgment Bars Harm Under Collateral Estoppel Doctrine, Panel Affirms

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on June 2 affirmed a lower federal court's dismissal of a lawsuit brought by the previous owners of a self-storage company alleging that they were denied the insurance proceeds they were owed for Hurricane Katrina damage, as well as the ability to maintain an ownership stake in the self-storage company (BCR Safeguard Holding L.L.C., et al. v. Morgan Stanley Real Estate Advisor Inc. et al., No. 14-31068, 5th Cir.; 2015 U.S. App. LEXIS 9268).

Mealey's Banking & Finance - Federal Judge Allows Borrower To Amend Claims For RESPA Violations

BALTIMORE - A Maryland federal judge on June 1 found that most of a borrower's claims for violation of the Real Estate Settlement Procedures Act (RESPA) should be dismissed, but granted her leave to file an amended complaint to add more details about the qualified written requests she allegedly sent to Bank of America Corp. (BOA) (Michelle McCray v. Bank of America Corp., No. 14-02446, D. Md.; 2015 U.S. Dist. LEXIS 70657).

Mealey's Banking & Finance - Federal Judge Refuses To Grant Restraining Order Barring Property Foreclosure

GREENBELT, Md. - After finding that it was unlikely that a borrower will succeed on her claims for violation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), a Maryland federal judge on May 14 refused to grant her a temporary restraining order prohibiting the foreclosure of her property (Sandra Fowler v. Wells Fargo Home Mortgage Inc., et al., No. 15-1084, D. Md.; 2015 U.S. Dist. LEXIS 63076).

Mealey's Banking & Finance - Federal Judge Finds RESPA And HOEPA Claims Are Time-Barred

NEWARK, N.J. - A New Jersey federal judge on May 12 granted a motion to dismiss numerous claims asserted by a borrower attempting to avoid foreclosure, finding that his claims for violation of the Real Estate Settlement Procedures Act (RESPA) and the Home Ownership Equity Protection Act (HOEPA) were time-barred and that he failed to state a claim to support his other allegations (Benjamin Coleman v. Deutsche Bank National Trust Company, et al., No. 15-1080, D. N.J.; 2015 U.S. Dist. LEXIS 61875).

Mealey's Insurance - Judge: Insured Had Subjective Knowledge Of Facts Giving Rise To Claim; No Coverage

BALTIMORE - A Maryland federal judge ruled May 7 that a professional liability insurer did not wrongfully deny coverage for a real estate developer's professional negligence claim against an architect insured (McDowell Building LLC v. Zurich American Insurance Co., No. 12-2876, D. Md.; 2015 U.S. Dist. LEXIS 60350).

Mealey's Banking & Finance - Judge Finds RESPA Claim Can Proceed, Grants Partial Dismissal

DETROIT - A Michigan federal judge on April 22 granted a motion filed by lenders to dismiss borrowers' claims for breach of contract and other claims, but found that their claims for violation of Real Estate Settlement Procedures Act (RESPA) can proceed (Martin White Jr. et al. v. Wells Fargo Bank, N.A., AS, et al., No. 2:14-cv-12506, E.D. Mich.; 2015 U.S. Dist. LEXIS 52642).

Mealey's Insurance - Georgia High Court: Insured Cannot Pursue Bad Faith Action Against Excess Insurer

ATLANTA - The Georgia Supreme Court on April 20 found that a real estate investment trust insured cannot pursue a bad faith action against an excess insurer because the excess insurer did not consent to a $4.9 million securities class action settlement and the insured failed to satisfy the contractually agreed upon condition precedent to coverage (Piedmont Office Realty Trust, Inc., f/k/a Wells Real Estate Investment Trust, Inc. v. XL Specialty Insurance Company, No. S15Q0418, Ga. Sup.; 2015 Ga. LEXIS 247).

Mealey's Banking & Finance - Judge Finds TILA And RESPA Claims Are Time- Barred, Allows Amendments

FRESNO, Calif. - A California appeals court on April 14 dismissed numerous claims asserted by a property owner in relation to a default on her loan, including claims for violation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedure Act (RESPA) as time-barred (Judy Burden v. California Reconveance Company, et al., No. 1:15-cv-00314, E.D. Calif.; 2015 U.S. Dist. LEXIS 49111).

Mealey's Insurance - Judge Denies Summary Judgment In Dispute Between Developer, Architect's Insurer

BALTIMORE - A Maryland federal judge on April 13 denied dueling summary judgment motions in a coverage dispute between a real estate developer and its architect's professional liability insurer, finding that fact issues preclude summary judgment rulings (McDowell Building LLC v. Zurich American Insurance Co., No. 12-2876, D. Md.; 2015 U.S. Dist. LEXIS 47904).