LexisNexis® Legal Newsroom
Mealey's PI/Product Liability - Appeals Court Reinstates Association's Warranty Claim Against Developer

MINNEAPOLIS - An appellate court panel in Minnesota on April 17 overturned a trial court judge's ruling finding that a building association's breach of express warranty claim arising from water intrusion caused by a lack of proper caulking was untimely, ruling that the judge applied the wrong statute of limitations period (Town Center Office Plaza Association, Inc. v. Carlson Real Estate Ventures, LLC, et al., No. A16-1230, Minn. App., 2017 Minn. App. Unpub. LEXIS 349).

Mealey's Banking & Finance - Panel: Insurer Breached Duty To Defend Claims Of Suspicious 'Flip' Transactions

CHICAGO - The Seventh Circuit U.S. Court of Appeals on April 10 found that an errors and omissions liability insurer has a duty to defend against underlying claims that its title insurance agency insured executed real estate "flip" transactions "contrary to the spirit and purpose" of its agency contract (Title Industry Assurance Co. v. First American Title Ins. Co., et al., No. 15-3310, 7th Cir., 2017 U.S. App. LEXIS 6092).

Mealey's Insurance - Panel: Insurer Breached Duty To Defend Claims Of Suspicious 'Flip' Transactions

CHICAGO - The Seventh Circuit U.S. Court of Appeals on April 10 found that an errors and omissions liability insurer has a duty to defend against underlying claims that its title insurance agency insured executed real estate "flip" transactions "contrary to the spirit and purpose" of its agency contract (Title Industry Assurance Co. v. First American Title Ins. Co., et al., No. 15-3310, 7th Cir., 2017 U.S. App. LEXIS 6092).

Mealey's Antitrust/Unfair Competition - Federal Judge Finds No Facts Showing Loan Transfer Was Void

SAN DIEGO - A California federal judge on April 5 dismissed numerous claims asserted by a property owner, including causes of action for violations of California's unfair competition law (UCL) and the Real Estate Settlement Procedures Act (RESPA), finding that he failed to plead the claims with the required specificity (Fernando D. Lopez v. Wells Fargo, N.A., et al., No. 16-cv-0811, S.D. Calif., 2017 U.S. Dist. LEXIS 52527).

Mealey's Banking & Finance - Federal Judge Finds No Facts Showing Loan Transfer Was Void

SAN DIEGO - A California federal judge on April 5 dismissed numerous claims asserted by a property owner, including causes of action for violations of California's unfair competition law (UCL) and the Real Estate Settlement Procedures Act (RESPA), finding that he failed to plead the claims with the required specificity (Fernando D. Lopez v. Wells Fargo, N.A., et al., No. 16-cv-0811, S.D. Calif., 2017 U.S. Dist. LEXIS 52527).

Mealey's Litigation Procedure - Federal Magistrate Judge Refuses To Exclude Real Estate Appraisal Testimony

CHICAGO - An Illinois federal magistrate judge on April 4 declined to bar testimony from real estate appraisers in a dispute over a lease's purchase option between a gasoline retailer and a landlord because excluding either appraisal would upset the current balance (Buchanan Energy [N] LLC v. Lake Bluff Holdings LLC, No. 15-3851, N.D. Ill., 2017 U.S. Dist. LEXIS 51403).

Mealey's Antitrust/Unfair Competition - Judge Dismisses UCL Claims Related To Allegedly Unfair Rental Late Fees

SAN DIEGO - A California federal judge on March 31 granted a real estate company's motion to dismiss claims that it violated California's unfair competition law (UCL) when it charged a tenant a late fee, finding that the tenant failed to show that the fees were not practicable (Jordan Kohler v. Greystar Real Estate Partners, LLC, No. 15-cv-02195, S.D. Calif., 2017 U.S. Dist. LEXIS 49762).

Mealey's Litigation Procedure - Purchase Of Retirement Home Is Relevant To Claim For Disability Benefits, Judge Says

WEST PALM BEACH, Fla. - Because certain circumstances regarding a disability claimant's move to Florida may be relevant to a claim for total disability benefits, a Florida federal judge on March 29 determined that a disability insurer is entitled to information regarding the claimant's real estate transactions (Mark Goodman v. Security Mutual Life Insurance Company of New York, No. 16-81742, S.D. Fla.; 2017 U.S. Dist. LEXIS 45966).

Mealey's Insurance - Purchase Of Retirement Home Is Relevant To Claim For Disability Benefits, Judge Says

WEST PALM BEACH, Fla. - Because certain circumstances regarding a disability claimant's move to Florida may be relevant to a claim for total disability benefits, a Florida federal judge on March 29 determined that a disability insurer is entitled to information regarding the claimant's real estate transactions (Mark Goodman v. Security Mutual Life Insurance Company of New York, No. 16-81742, S.D. Fla.; 2017 U.S. Dist. LEXIS 45966).

Mealey's Banking & Finance - Federal Judge Finds RESPA Claim Related To Loss Mitigation Fails

FLORENCE, S.C. - A Michigan federal judge on March 21 found that a borrower failed to allege a violation of the Real Estate Settlement Procedures Act (RESPA) in relation to the denial of her loan modification application, finding that even if her claims against the lenders were true, she failed to state a RESPA claim against them (Alice M. Mangum v. First Reliance Bank, et al., No. 4:16-CV-02214, D. S.C., 2017 U.S. Dist. LEXIS 40103).

Mealey's Banking & Finance - 11th Circuit Finds Lack Of Standing, Affirms Dismissal Of RESPA Claim

ATLANTA - The 11th Circuit U.S. Court of Appeals on March 1 affirmed a district court's decision to dismiss a borrower's claim for violation of the Real Estate Settlement Procedures Act (RESPA) in relation to a written request for information, finding that he failed to show that he had standing to assert a claim for statutory damages (Charles Meeks v. Ocwen Servicing LLC, No. 16-15536, 11th Cir., 2017 U.S. App. LEXIS 3677).

Mealey's Banking & Finance - Judge: Suit Arises Out Of Exclusion For 'Insufficiency In The Amount Of Proceeds'

BALTIMORE - A Maryland federal judge on Feb. 17 found that coverage for an underlying lawsuit alleging that an insured was negligent in the provision of settlement services for the sale of a home is barred by a professional liability insurance policy's exclusion for "insufficiency in the amount of the proceeds" (Resource Real Estate Services, LLC v. Evanston Insurance Co., No. 16-168, D. Md., 2017 U.S. Dist. LEXIS 22920).

Mealey's Insurance - Judge: Suit Arises Out Of Exclusion For 'Insufficiency In The Amount Of Proceeds'

BALTIMORE - A Maryland federal judge on Feb. 17 found that coverage for an underlying lawsuit alleging that an insured was negligent in the provision of settlement services for the sale of a home is barred by a professional liability insurance policy's exclusion for "insufficiency in the amount of the proceeds" (Resource Real Estate Services, LLC v. Evanston Insurance Co., No. 16-168, D. Md., 2017 U.S. Dist. LEXIS 22920).

Mealey's Banking & Finance - Florida Federal Judge Allows FCCPA Claim Against Lender To Proceed

FORT LAUDERDALE, Fla. - A Florida federal judge on Feb. 6 dismissed claims for negligence and violation of the Real Estate Settlement Procedures Act (RESPA) against a bank in relation to a request for information but allowed a claim for violation of Florida consumer collection law to proceed (Loris B. Ranger, et al. v. Wells Fargo Bank, N.A. d/b/a America's Servicing Company, No. 15-62511, S.D. Fla., 2017 U.S. Dist. LEXIS 17148).

Mealey's Banking & Finance - 2nd Circuit Finds Duty Under RESPA Was Not Triggered, Affirms Ruling

NEW YORK - The Second Circuit U.S. Court of Appeals on Jan. 31 affirmed a bankruptcy court's finding that a mortgage company's statutory duty to respond to a request under the Real Estate Settlement Procedures Act (RESPA) was never triggered (Barry F. Mack v. Rescap Borrower Claim Trust, No. 16-304, 2nd Cir., 2017 U.S. App. LEXIS 1683).

Mealey's Litigation Procedure - Federal Judge Finds Tenants Lack Standing To Sue Real Estate Trust

SAN JOSE, Calif. - A California federal judge on Jan. 20 dismissed class action claims for violation of California's unfair competition law (UCL), negligence and other causes of action related to a data breach of a real estate trust's computer system, finding that former tenants of the trust's property failed to show that they had standing to sue (Mark Foster, individually and on behalf of all others similarly situated, v. Essex Property Inc., No. .5:14-cv-05531, N.D. Calif.; 2017 U.S. Dist. LEXIS 8373).

Mealey's Antitrust/Unfair Competition - Federal Judge Finds Tenants Lack Standing To Sue Real Estate Trust

SAN JOSE, Calif. - A California federal judge on Jan. 20 dismissed class action claims for violation of California's unfair competition law (UCL), negligence and other causes of action related to a data breach of a real estate trust's computer system, finding that former tenants of the trust's property failed to show that they had standing to sue (Mark Foster, individually and on behalf of all others similarly situated, v. Essex Property Inc., No. .5:14-cv-05531, N.D. Calif.; 2017 U.S. Dist. LEXIS 8373).

Mealey's PI/Product Liability - Judge: Not Enough Facts To Show Builder's Transfer Of Assets Was Fraudulent

GULFPORT, Miss. - A federal judge in Mississippi on Jan. 20 denied a property owner's motion for partial summary judgment, ruling that the plaintiff company did not present sufficient facts to show that a construction company's transfer of assets to another company after judgment had been entered against it in arbitration hearing was fraudulent (RDS Real Estate LLC v. Abrams Group Construction LLC, et al., No. 15CV361-LG-RHW, S.D. Miss.; 2017 U.S. Dist. LEXIS 8180).

Mealey's Banking & Finance - 6th Circuit Finds RESPA And Foreclosure Claims Are Not Related

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Jan. 20 affirmed a district court's decision to dismiss a borrower's compulsory counterclaim of foreclosure, finding that a foreclosure case is not "logically related" to a claim for violation of the Real Estate Settlement Procedures Act (RESPA) (Christine Marais v. JPMorgan Chase Bank, N.A., No. 16-3323, 6th Cir.; 2017 U.S. App. LEXIS 1095).

Mealey's Litigation Procedure - PCA Holds Hearing On Jurisdiction, Announces Russia Did Not Participate

THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on Jan. 13 issued various updates in an arbitration commenced by numerous real estate entities against the Russian Federation in relation to an alleged real estate investment in Crimea, announcing that the Russian Federation did not participate in a recent hearing on jurisdiction and admissibility (Everest Estate LLC, et al. v. The Russian Federation, No. 2015-36, PCA).

Mealey's Insurance - Judge: No Indemnification Owed For Water Damage Caused By Insured

CHICAGO - An insurer has no duty to indemnify an insured and no duty to reimburse an additional insured for alleged water damage to an apartment building because there was no covered "occurrence" for the insured's failure to properly cover the building's roof, an Illinois federal judge ruled Jan. 6 (Brit UW Ltd. v. Tripar Inc. and Davis Russell Real Estate and Management LLC, No. 15-5866, N.D. Ill.; 2017 U.S. Dist. LEXIS 2462).

Mealey's Banking & Finance - Judge Refuses To Dismiss RESPA Claim, Adopts Magistrate's Report

DETROIT - A Michigan federal judge on Dec. 20 adopted a magistrate judge's recommendation that the majority of claims asserted by former property owners against two loan companies in relation to the foreclosure of their property be dismissed, but found that their cause of action for violation of the Real Estate Settlement Procedures Act (RESPA) should be allowed to proceed (Rodney Helm, et al. v. Freedom Mortgage Corporation, et al., No. 15-cv-12394, E.D. Mich.; 2016 U.S. Dist. LEXIS 175450).

Mealey's Litigation Procedure - English Court Rejects Appeal Of Order Enforcing $72M London Award

LONDON - An England and Wales court on Dec. 19 rejected the appeal of an investor in a Moscow real estate project of a judgment enforcing a $72,243,000 arbitral award issued in favor of another investor by the London Court of International Arbitration (LCIA), finding that the judge did not err in his interpretation that an underlying arbitration clause existed (Ashot Yegiazaryan v. Vitaly Ivonovich Smagin, No. [2016] EWCA Civ 1290, England and Wales App.).

Mealey's Litigation Procedure - Institutional Investor Group Appointed Lead Plaintiff In Securities Class Action

NEW YORK - A group of institutional investors has met all statutory requirements to serve as lead plaintiff in a securities class action against a real estate investment trust and several of its former executive officers and directors, a federal magistrate judge in New York ruled Nov. 29 (Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds v. Brixmor Property Group Inc., et al., No. 16-2400, S.D. N.Y.; 2016 U.S. Dist. LEXIS 164682).

Mealey's Securities/D&O Liability - Institutional Investor Group Appointed Lead Plaintiff In Securities Class Action

NEW YORK - A group of institutional investors has met all statutory requirements to serve as lead plaintiff in a securities class action against a real estate investment trust and several of its former executive officers and directors, a federal magistrate judge in New York ruled Nov. 29 (Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds v. Brixmor Property Group Inc., et al., No. 16-2400, S.D. N.Y.; 2016 U.S. Dist. LEXIS 164682).