Lusnak v. Bank of America

Although the Dodd-Frank Act significantly altered the regulatory framework governing financial institutions, with respect to National Bank Act (NBA) preemption, it merely codified the existing standard established in Barnett Bank of Marion County, N.A. v. Nelson, 517 U.S. 25 (1996). The Ninth Circuit applied that standard and held that the National Bank Act did not preempt California's state escrow interest law. In this case, the panel reversed the district court's dismissal of a putative class action alleging that Bank of America violated both California state law and federal law by failing to pay interest on his escrow account funds. The panel held that plaintiff could proceed with his California Unfair Competition Law and breach of contract claims against Bank of America. View "Lusnak v. Bank of America" on Justia Law