Justia Banking Opinion Summaries

Plaintiffs, Massachusetts residents, bought a three-dwelling in Massachusetts, financing the entire purchase price with two mortgage loans from Plaza Home Mortgage (Plaza). After the collapse of the housing market, Plaintiffs sued Plaza, alleging state common law and statutory violations in making the loans. The district court dismissed for failure to state a claim. The First Circuit Court of Appeals affirmed, holding (1) the district court correctly dismissed Plaintiffs' claim based on Plaza's alleged violation of the Massachusetts covenant of good faith and fair dealing; and (2) Plaintiffs' claim based on a violation of the Massachusetts consumer protection was correctly dismissed as time-barred. View "Latson v. Plaza Home Mortgage, Inc." on Justia Law

Plaintiff Mark Case appealed a superior court order that granted summary judgment to defendant St. Mary's Bank and denied his cross-motion for summary judgment on his claims that the bank engaged in trespass and violated state law and the New Hampshire Consumer Protection Act (CPA). The matter arose from the bank's foreclosure on property Plaintiff leased from his landlord, Jean Marcelin. Months before the foreclosure sale, pipes burst in an apartment above plaintiff's, causing a flood. The City of Manchester turned off water and electricity to the building. Plaintiff spoke about the problem to Marcelin, who denied that he still owned the property. Plaintiff then spoke about the problem to a Bank representative; the representative asked plaintiff to allow her, a plumber, and an electrician into the building. The plaintiff complied with this request. The City placed a legal notice on the property’s front door, stating that it was unsafe and prohibiting occupancy. Plaintiff had not resided at the property since the flood, though most of his possessions remained at the property. When the Bank allowed him access to the apartment to remove his possessions, plaintiff observed that his apartment door was "wide open" and subsequently alleged that many of his possessions were missing. Finding no error with the superior court order, the Supreme Court affirmed the decision. View "Case v. St. Mary's Bank " on Justia Law

Plaintiffs and defendants obtained class certification and settlement approval for a nationwide class action involving three related lawsuits, alleging violations of the Fair Debt Collection Practices Act, 15 U.S.C. 1692-1692p and state law, based on the practice of “robo-signing” affidavits in debt collections. Eight individuals objected. The Sixth Circuit reversed, holding that the disparity in the relief afforded under the settlement to the named plaintiffs (exoneration of debts, $2000, and prospective injunctive relief) and the unnamed class members ($17 and prospective injunctive relief) made the settlement unfair. The class notice was inadequate and, although the class satisfies four of the six certification requirements (numerosity, commonality, typicality and predominance), the representation is not adequate under Rule 23(a) nor is the class action vehicle superior. View "Vassalle v. Midland Funding LLC" on Justia Law

Plaintiff filed a pro se complaint against two entities she claimed illegally foreclosed her home once she defaulted on her mortgage payments. The district court dismissed the complaint for failure to state a claim. The court then addressed Plaintiff's request for leave to amend the complaint, finding that an amendment would be futile. The First Circuit Court of Appeals reversed and remanded, holding (1) the complaint stated plausible claims for relief, and therefore, the district court erred in dismissing the complaint in its entirety; and (2) the district court abused its discretion in deciding that it would be futile to allow an amendment to the complaint. View "Juarez v. Select Portfolio Servicing, Inc." on Justia Law

Mortgagors appealed from the district court's dismissal of their claims against the FHLMC and other financial institutions, a law firm, and others. Mortgagors asserted twenty-one claims under Minnesota law related to defendants' rights to the mortgages on the mortgagors' homes. The court rejected the mortgagors' argument that the district court improperly dismissed their claims against the law firm and their contention that their complaint made out a Minnesota slander-of-title action. The court also concluded that the mortgagors did not make out a quiet title claim and the district court properly dismissed their claims against the financial institutions. View "Peterson, et al v. CitiMortgage, Inc., et al" on Justia Law

Mortgagors filed suit in Minnesota state court against defendants, alleging numerous deficiencies in the assignment of their mortgages and in their foreclosures. In this appeal, plaintiffs asserted that the district court erred in denying their motion to remand when it concluded that they failed to make out claims for slander of title, declaratory judgment, and quiet title, and in mistakenly relying on Jackson v. Mortgage Registration Sys. Because the court recently concluded that nearly identical claims against a resident law firm had no reasonable basis in law and fact under Minnesota law and constituted fraudulent joinder, the court rejected plaintiffs' contention that the district court erred by dismissing the claims against the law firm and denying remand; the court disposed of the slander-of-title claim because the court recently upheld the dismissal of a virtually identical claim in Butler v. Bank of America; the court denied plaintiffs' request for declaratory judgment to determine whether defendants had "any true interest in or right to foreclose on their properties" and whether the notes were properly accelerated by the correct party; and the court affirmed the district court's dismissal of the quiet title action. View "Karnatcheva, et al v. JP Morgan Chase Bank, et al" on Justia Law

Plaintiffs sued Wells Fargo for fraudulent misrepresentation and promissory estoppel after Wells Fargo initiated foreclosure when plaintiffs stopped paying on their mortgage loan. The court held that plaintiffs have not stated a plausible claim for fraudulent misrepresentation regarding the modification of their home loan and therefore, the district court did not err in dismissing plaintiffs' claims under Rules 12(b)(6) and 9(b). The court also held that plaintiffs have not stated a plausible claim for promissory estoppel and the district court did not err in dismissing their claim. View "Freitas, et al v. Wells Fargo Home Mortgage, Inc." on Justia Law

Klie purchased property with financing from Coldwell Banker, which assigned its rights to the Federal National Mortgage Corporation (Fannie Mae) but continued to service the loan. The assignment was never recorded. In 2007, servicing rights transferred to JP Morgan. Coldwell Banker assigned its rights in the note and mortgage (none) to JP Morgan, which reassigned to Fannie Mae. Chase, an arm of JP Morgan, serviced the loan until Klie died. With the loan in default, Chase’s law firm, RACJ, prepared an assignment of the note and mortgage that purported to establish Chase’s right to foreclose and filed a foreclosure actionf, naming Glazer, a beneficiary of Klie’s estate. The court entered a decree of foreclosure, but later vacated and demanded that RACJ produce the original note. Chase dismissed the foreclosure without prejudice. Glazer filed suit, alleging that Chase and RACJ violated the Fair Debt Collection Practices Act, 15 U.S.C. 1692, and Ohio law by falsely stating that Chase owned the note and mortgage, improperly scheduling a foreclosure sale, and refusing to verify the debt upon request. Chase and RACJ moved to dismiss. The district court dismissed. The Sixth Circuit reversed, holding that mortgage foreclosure is debt collection under the Act. View "Glazer v. Chase Home Fin. LLC" on Justia Law

Plaintiffs sued Wells Fargo under California state law for engaging in unfair business practices by imposing overdraft fees based on a high-to-low posting order and for engaging in fraudulent practices by misleading clients as to the actual posting order used by the bank. The district court entered judgment in favor of plaintiffs and Wells Fargo subsequently appealed, raising issues of federal preemption. The court concluded that federal law preempted state regulation of the posting order as well as any obligation to make specific, affirmative, disclosures to bank customers. The court held, however, that Federal law did not preempt California consumer law with respect to fraudulent or misleading representations concerning posting. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Gutierrez, et al v. Wells Fargo Bank, N.A." on Justia Law

Plaintiff filed claims against Wachovia for willful noncompliance with certain provisions of the Fair Credit Reporting Act, 15 U.S.C. 1681s-2(a) and for common law defamation. The court held that the district court correctly concluded that there was no private cause of action for violations of section 1681s-2(a). Because the complaint only alleged violations of 1681s-2(a)(1), (2), and (8), the district court properly granted summary judgment on plaintiff's claims under the Act. The court also held that the district court did not abuse its discretion by denying leave to amend in regards to plaintiff's failure to state a claim under section 1681s-2(b) in light of plaintiff's delay and the prejudice to Wachovia. Accordingly, the court affirmed the judgment of the district court. View "Longman v. Wachovia Bank NA" on Justia Law