Camidoglio LLC v. Wells Fargo

The Borrowers filed suit against Wells Fargo based on Wells Fargo and its predecessors' alleged miscalculation of interest on the Borrowers' loans. The Ninth Circuit held that the Home Owners' Loan Act (HOLA) did not preempt the Borrowers' "Interest Rate Calculation" breach of contract claim, which arose under Washington law, because a common law breach of contract claim was not the type of law listed in paragraph (b) of 12 C.F.R. 560.2, but comes within paragraph (c) of that regulation and is a law that only incidentally affects the lending operations of federal savings associations. The panel affirmed summary judgment for Wells Fargo on the Borrowers' "Use of Unapproved Indexes" breach of contract claim, and the other claims related to this alleged conduct by the Lenders. In this case, the Lenders gave notice to their primary regulators of their intent to substitute the Indexes used to calculate interest on the Borrowers' loans and the regulators did not object. The panel also affirmed the denial of the Borrowers' motion for discovery sanctions pursuant to Federal Rule of Civil Procedure 37 because the Borrowers failed to show prejudice resulting from this ruling. Finally, the panel vacated the district court's denial of attorneys' fees without prejudice. View "Camidoglio LLC v. Wells Fargo" on Justia Law