Justia Banking Opinion Summaries

A property owner defaulted on his obligations, and the construction lender foreclosed the property at issue in this appeal. The general contractor had a materialman’s lien on the property. At the foreclosure sale, the purchase price for the property was significantly lower than the total amounts owed. The sole issue before the chancery court was which lien had priority – that of the construction lender, or that of the contractor. The chancery court found that the contractor’s lien had priority. Because the chancery court did not abuse its discretion in arriving at that conclusion, the Mississippi Supreme Court affirmed. View "Whitney Bank v. Triangle Construction Company, Inc." on Justia Law

The Fifth Circuit dismissed this interlocutory appeal from an order denying a motion for a preliminary injunction to stop a foreclosure. The court applied In Matter of Sullivan Cent. Plaza, I, Ltd., and held that the appeal was moot because the subject property was sold at a foreclosure sale. The court rejected plaintiff's argument that the instant appeal was not moot simply because defendants purchased the foreclosed property and were before the court on appeal. The court reasoned that it could not enjoin that which had already taken place. View "Dick v. Colorado Housing Enterprises, LLC" on Justia Law

The Fifth Circuit affirmed the district court's grant of summary judgment in favor of Deutsche Bank in an action challenging a foreclosure sale. The court held that the district court did not err in holding that the Rooker-Feldman doctrine did not preclude review of the parties' claims; the court has jurisdiction to hear this appeal; the district court did not err by granting summary judgment to Deutsche Bank because the Vacating Order was void under Texas law and plaintiffs failed to cite any authority demonstrating that the Foreclosure Order was void rather than voidable; and Texas law provided plaintiffs an adequate procedure to challenge the Foreclosure Order and their due process rights were not violated. View "Burciaga v. Deutsche Bank National Trust Co." on Justia Law

Here the Supreme Court declined to apply Nev. Rev. Stat. 11.190(1)(b)’s statute of limitations for contract actions to nonjudicial foreclosures because statutes of limitations only apply to judicial actions, and a nonjudicial foreclosure by its nature is not a judicial action.After HSBC Bank USA, which was the beneficiary of a promissory note and deed of trust on Appellant’s home, recorded a notice of default and election to sell Appellant’s property “without any court action,” Appellant commenced this action to quiet title and extinguish HSBC’s interest in the property. The district court dismissed Appellant’s claim, thus rejecting Appellant’s argument that HSBC was barred from foreclosing on the mortgage property because the six-year limitation period began running with the initial notice of default and had therefore expired. The Supreme Court affirmed, holding that the statute of limitations set forth in section 11.190(1)(b) did not extinguish HSBC’s right to pursue a nonjudicial foreclosure because statutes of limitations apply only to judicial actions. View "Facklam v. HSBC Bank USA" on Justia Law

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

Defendants, debtors who have failed to repay loans held by BB&T, appealed the respective judgments of the district court against them. The Ninth Circuit affirmed the judgment, holding that BB&T had standing to bring the action; issue preclusion did not bar BB&T's arguments; Subsection (1)(c) of Nev. Rev. Stat. 40.459(1)(c), which limited the ability of a third party to profit by purchasing real estate debt at a discount and foreclosing at full price, was preempted by federal law as applied to transferees of the FDIC; the district court did not err in granting summary judgment to BB&T in spite of defendants' affirmative defenses of breach of covenant of good faith and fair dealing, estoppel, modifications, laches, and failure to mitigate damages; the district court did not abuse its discretion by denying defendants' late-filed motion to amend pleadings because defendants' did not demonstrate good cause nor excusable neglect; defendants were not entitled to a jury trial on the fair market value of the property; and BB&T did not violate Nev. Rev. Stat. 163.120(2) concerning notice to trust beneficiaries. View "Branch Banking & Trust Co. v. D.M.S.I., LLC" on Justia Law

The Supreme Court affirmed the portion of the intermediate court of appeals’ (ICA) judgment denying without prejudice Philip Kozma’s request for attorneys’ fees related to his appeal but vacated the portion of the ICA’s judgment denying costs. The appeal was related to a foreclosure action brought by Deutsche Bank National Trust Company. The circuit court granted Deutsche Bank’s motion for summary judgment and decree of foreclosure. On appeal, the ICA vacated the circuit court’s judgment and remanded for further proceedings. Upon Kozma’s request seeking attorney’s fees and costs related to his appeal, the ICA determined that Kozma was not a “prevailing party’ at this point in the proceeding. The Supreme Court held (1) the ICA did not err in denying Kozma’s request for attorney’s fees because there was no “prevailing party” entitled to such fees under Haw. Rev. Sat. 607-14; but (2) the ICA incorrectly concluded that Kozma was not entitled to costs pursuant to Haw. R. App. P. 39. View "Deutsche Bank National Trust Co. v. Kozma" on Justia Law

The Ninth Circuit affirmed summary judgment for Freddie Mac in a quiet title action brought by a plaintiff who purchased real property in a homeowners association foreclosure sale. Plaintiff argued that the Nevada superpriority lien provision empowered the association to sell the home to him free of any other liens or interests, priority status aside. The panel held that the district court did not err in concluding that the Federal Foreclosure Bar superseded the Nevada superpriority lien provision. Although the recorded deed of trust here omitted Freddie Mac's name, Freddie Mac's property interest was valid and enforceable under Nevada law. The panel explained that, because Freddie Mac possessed an enforceable property interest and was under the agency's conservatorship at the time of the homeowners association foreclosure sale, the Federal Foreclosure Bar served to protect the deed of trust from extinguishment. Freddie Mac continued to own the deed of trust and the note after the sale to plaintiff. View "Berezovsky v. Bank of America" on Justia Law

Aliant Bank, a division of USAmeribank ("Aliant"), sued various individuals and business entities involved in a failed effort to develop the Twelve Oaks subdivision in Odenville, alleging that, as a result of those defendants' conspiracy and wrongful actions, Aliant's security interest in the property upon which the Twelve Oaks subdivision was to be built had been rendered worthless. The Circuit Court ultimately entered a number of orders either dismissing Aliant's claims or entering a summary judgment in favor of the various defendants. Aliant has filed three appeals; we affirm in part and reverse in part in appeals no. 1150822 and no. 1150823 and affirm in appeal no. 1150824. After careful consideration of all the claims, the Alabama Supreme Court affirmed those judgments in part and reversed them in part. In appeal no. 1150822, the Court reversed summary judgment against Aliant (1) on the negligence and breach-of-fiduciary duty claims asserted against the Board members in count four of Aliant's complaint; (2) on the fraudulent-misrepresentation and fraudulent-suppression claims asserted against Smith and Twelve Oaks Properties in count seven of Aliant's complaint; and (3) on the conspiracy claims asserted against Smith, Twelve Oaks Properties, Four Star Investments, Mize, and Billy Smith in count seven of Aliant's complaint. The Court affirmed summary judgment against Aliant and in favor of the various Twelve Oaks defendants in all other respects. In appeal no. 1150823, the Court reversed summary judgments against Aliant on the conspiracy claims asserted against Hunt and WHA in count seven of Aliant's complaint; however, the Court affirmed those summary judgments with regard to all other claims asserted by Aliant against Hunt and WHA. Finally, in appeal no. 1150824, the Court affirmed summary judgment against Aliant and in favor of the EOS defendants on all counts. View "Aliant Bank v. Wrathell, Hunt & Associates, LLC" on Justia Law

Plaintiff filed suit against Wells Fargo, alleging nonconformity with the requirements for foreclosing home equity loans and seeking a permanent injunction and forfeiture. The district court held that plaintiff's suit was time barred and dismissed under Federal Rule of Civil Procedure 12(b)(6). The Texas Supreme Court subsequently issued two opinions, Wood v. HSBC Bank USA, N.A., 505 S.W.3d 542 (Tex. 2016), and Garofolo v. Ocwen Loan Servicing, L.L.C., 497 S.W.3d 474 (Tex. 2016). The Fifth Circuit held that Wood and Garofolo constitute intervening changes in law sufficient to justify post-judgment relief for plaintiff on her claim to preclude foreclosure but not on her claim for forfeiture. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Alexander v. Wells Fargo Bank" on Justia Law