Justia Banking Opinion Summaries

Articles Posted in Antitrust & Trade Regulation
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Plaintiff refinanced his residential home mortgage, taking out a loan secured by his home. The mortgage listed Mortgage Electronic Registration Systems, Inc. (“MERS”) as the mortgagee of record. MERS subsequently transferred the mortgage. Wells Fargo Bank, N.A. as Trustee for RMAC Pass-Through Trust, eventually obtained the mortgage. After Wells Fargo sold Serra’s property at foreclosure, Serra brought suit in Massachusetts state court asserting, among other claims, claims for wrongful foreclosure and unfair or deceptive business practices based on his theory that MERS lacked the authority to transfer his mortgage. Serra’s suit was removed on the basis of diversity, and summary judgment as to all claims was entered against Serra. The First Circuit Court of Appeals affirmed, holding (1) under Massachusetts law, MERS may validly possess and transfer a legal interest in a mortgage; (2) subsequent mortgage assignees cannot incur liability for the allegedly predatory practices of their predecessor-in-interest; and (3) Plaintiff’s argument that his right to rescission was improperly cut short by the sale of his property was without merit. View "Serra v. Quantum Servicing Corp." on Justia Law

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Plaintiffs obtained loans from Defendant, a bank. Plaintiffs later, on behalf of themselves and all those similarly situated, filed a complaint alleging that Defendant's loan transactions violated North Carolina's unfair and deceptive practices statute. Specifically, Plaintiffs alleged that they paid loan discount fees but did not receive discounted loans and that the fees they were charged in connection with origination of their loans were unnecessary and unreasonable. The trial court granted partial summary judgment for Plaintiffs on their loan discount claims and excessive pricing claims under N.C. Gen. Stat. 75-1.1. The court of appeals affirmed entry of summary judgment on Plaintiffs' loan discount claims but reversed the grant of summary judgment on the excessive fees claims. The Supreme Court reversed, holding (1) issues of material fact existed in regards to Plaintiffs' loan discount claims; and (2) Plaintiffs' excessive pricing claims were not recognized by section 75-1.1. Remanded. View "Bumpers v. Cmty. Bank of N. Va." on Justia Law

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The CEO and sole shareholder of Zee decided to expand his chemical sales business into the water treatment industry and hired employees who were currently working or had previously worked in the industry. Four employees came from GE and were bound by non-compete agreements. GE sued Zee and its former employees in North Carolina state court for breach of contract, tortious interference with contract, and unfair trade practices. The state court found the agreements enforceable and held Zee and the employees jointly and severally liable for $288,297.00 in compensatory damages as a result of unfair and deceptive trade practices and for $5,769,903.10 in attorney fees, $864,891.00 in punitive damages, and $257,931.44 in costs. GE discovered that Zee had tied up virtually all of its assets in a credit facility agreement with BMO Harris Bank before entry of judgment; registered the judgment in Illinois, Harris’s principal place of business; and served Harris with a citation to discover Zee’s assets. GE objected to removal to federal court, but the district court dismissed GE’s case entirely. The Seventh Circuit vacated, finding that GE raised a timely and sound objection to removal under the forum-defendant rule, and the district court should have remanded the case. View "GE Betz, Inc. v. Zee Co., Inc." on Justia Law

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Metropolitan National Bank (MNB) loaned Grand Valley Ridge several million dollars for the completion of a subdivision. After Grand Valley failed to make its interest payments, MNB filed a petition for foreclosure. Grand Valley and Thomas Terminella, a member of Grand Valley (collectively, Appellants), filed an amended counterclaim alleging various causes of action. During the trial, the circuit court granted Appellants' motion to take a voluntary nonsuit of their claims of negligence and tortious interference with contract. The circuit court held in favor of MNB. The court subsequently granted MNB's petition for foreclosure and awarded a judgment against Appellants. Thereafter, Appellants filed a complaint alleging their original nonsuited counterclaims and adding additional claims. MNB moved to dismiss Appellants' complaint and filed a motion for sanctions. The circuit court granted both motions. The Supreme Court affirmed, holding, inter alia, (1) because Appellants brought claims clearly barred by the statute of limitations, the circuit court did not abuse its discretion in awarding sanctions; and (2) the circuit court properly granted summary judgment for MNB on Grand Valley's nonsuited issues based on the applicable statute of limitations. View "Grand Valley Ridge LLC v. Metropolitan Nat'l Bank" on Justia Law