Articles Posted in US Court of Appeals for the Eighth Circuit

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Plaintiffs filed suit against their loan servicer, Rushmore, in state court for breach of contract, unjust enrichment, and injunctive relief. After removal to federal court, plaintiffs amended their complaint to add a claim that Rushmore violated the Minnesota statutory requirements for handling foreclosures pursuant to Minn. Stat. 582.043, and added U.S. Bank as a party. The Minnesota Supreme court answered a certified question and held that the lis pendens deadline contained in section 582.043, subd. 7(b) cannot be extended upon a showing of excusable neglect pursuant to Minn. R. Civ. P. 6.02. The Eighth Circuit held that the Minnesota Supreme Court's decision resolved this appeal, because plaintiffs failed to file the lis pendens within their redemption period as required by section 582.043, subd. 7(b). Accordingly, the court affirmed the district court's grant of summary judgment for defendants. View "Litterer v. Rushmore Loan Management Services, LLC" on Justia Law

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The Eighth Circuit affirmed the district court's judgment for Wells Fargo in a third lawsuit arising between the parties involving the foreclosure of plaintiff's property. Plaintiff alleged that the bank violated Minn. Stat. 582.043 when it continued with foreclosure proceedings after he had submitted an application for a loan modification, and Wells Fargo brought a counterclaim against him for breach of a prior settlement agreement. The court held that plaintiff's claim was barred by res judicata because he could have brought the claim during the 2013 foreclosure litigation and he had an opportunity to litigate the claim fairly and fully if he had timely raised it. The court also held that the district court did not err in granting judgment on the pleadings for Wells Fargo on the bank's counterclaim where plaintiff was not discharged from his obligation to perform under the settlement agreement. Finally, the district court did not abuse its discretion by denying leave to amend on futility grounds. View "Lansing v. Wells Fargo Bank, N.A." on Justia Law

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The Eighth Circuit reversed the district court's grant of summary judgment against Specialized Loan Servicing, in an action alleging violations of the Real Estate Settlement Procedures Act (RESPA) and the Minnesota Mortgage Originator and Servicer Licensing Act. The court held that plaintiff failed to prove actual damages under RESPA and therefore he failed to establish an essential element of his federal claim. In this case, the bank records that plaintiff obtained for 2012 and 2013 were irrelevant to the dispute whether his loan payments were past due before June 2011. In the alternative, plaintiff did not produce evidence to support a finding of "pattern or practice" here, and there was no evidence that Specialized failed to investigate and respond reasonably to qualified written requests from other borrowers. Consequently, the court reversed as to the state law claim as well. The court remanded with directions to enter summary judgment for Specialized on the RESPA claim and for further proceedings on the claim under the Minnesota Act. View "Wirtz v. Specialized Loan Servicing, LLC" on Justia Law

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The Eighth Circuit reversed the district court's grant of summary judgment against Specialized Loan Servicing, in an action alleging violations of the Real Estate Settlement Procedures Act (RESPA) and the Minnesota Mortgage Originator and Servicer Licensing Act. The court held that plaintiff failed to prove actual damages under RESPA and therefore he failed to establish an essential element of his federal claim. In this case, the bank records that plaintiff obtained for 2012 and 2013 were irrelevant to the dispute whether his loan payments were past due before June 2011. In the alternative, plaintiff did not produce evidence to support a finding of "pattern or practice" here, and there was no evidence that Specialized failed to investigate and respond reasonably to qualified written requests from other borrowers. Consequently, the court reversed as to the state law claim as well. The court remanded with directions to enter summary judgment for Specialized on the RESPA claim and for further proceedings on the claim under the Minnesota Act. View "Wirtz v. Specialized Loan Servicing, LLC" on Justia Law

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The Eighth Circuit affirmed the district court's grant of summary judgment on remand in favor of defendants in an action filed by mortgage loan borrowers alleging violation of the Truth in Lending Act (TILA). Specifically, borrowers alleged that the lender did not provide the required number of copies of the required notice and material disclosures, and thus borrowers could rescind their loan on a date just shy of the three-year anniversary of loan execution. The court held that the district court did not err in determining that the signed acknowledgement borrowers had executed created a rebuttable presumption that they received the required number of copies and that borrowers' evidence was insufficient to overcome that rebuttable presumption. View "Jesinoski v. Countrywide Home Loans, Inc." on Justia Law

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Bank of America filed suit against the Hanna Parties for breach of contract after they failed to pay a loan. The jury found that the Hanna Parties did not breach the contract and the district court entered judgment for them. On remand, the Hanna Parties advanced defenses of fraudulent inducement and fraudulent failure to disclose. The Eighth Circuit affirmed the district court's grant of the Bank's motion for summary judgment on those defenses because JB Hanna could not have reasonably relied on the Bank's allegedly fraudulent representations. In this case, the district court correctly rejected the defenses of fraudulent inducement and fraudulent failure to disclose as a matter of law. Furthermore, because there was insufficient evidence to support the fraud defenses, the setoff defense also failed. View "Bank of America v. JB Hanna, LLC" on Justia Law

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Plaintiffs filed suit against several financial entities for foreclosing on a mortgage loan. The district court granted summary judgment for defendants. At issue were plaintiffs' claims under the Missouri Merchandising Practices Act (MMPA), Mo. Rev. Stat. 407.020. The court affirmed and held that the foreclosure was justified because defendants had a right to foreclose on the house and thus the MMPA claim failed as a matter of law because the loss was not caused by any misconduct on behalf of defendants. Likewise, plaintiffs' tortious interference claim failed because the foreclosure was legal. View "Wheatley v. JP Morgan Chase Bank" on Justia Law

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Plaintiff filed suit alleging that GCF violated the Truth in Lending Act (TILA), 15 U.S.C. 1601 et seq., by failing to clearly and conspicuously disclose the annual percentage rate (APR) and finance charge in his Retail Installment and Security Contract. The Eighth Circuit affirmed the district court's denial of plaintiff's motion for judgment as a matter of law where the Summary of Understanding was not completely integrated; the district court thus did not err in admitting parol evidence; and there was sufficient evidence to support GCF's affirmative defense of waiver. The court also affirmed the district court's denial of plaintiff's motion for a new trial where there was no record of what objections plaintiff would have raised had the district court turned on "white noise" during the initial portion of the trial, nor was he prejudiced; even if the district court erred by not sustaining plaintiff's objection to GCF's counsel's statement during closing argument, the statement was not such a magnitude that a new trial was warranted; the court rejected plaintiff's claims of error as to the discretionary evidentiary rulings; and there was no error in the district court's response to a jury question. View "Smiley v. Gary Crossley Ford, Inc." on Justia Law

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Plaintiffs filed suit under the Truth in Lending Act (TILA), 15 U.S.C. 1601-1667f, seeking to rescind their 2006 mortgage. Plaintiffs alleged that they did not receive sufficient copies of disclosures required by TILA at the December 2006 closing. The Eighth Circuit affirmed the district court's grant of summary judgment to the bank, holding that plaintiffs have not demonstrated a genuine issue of material fact regarding whether they received only one notice. The court explained that a borrower's own conclusory denial of receipt of TILA disclosures, unaccompanied by details or other evidence supporting the denial, was insufficient to rebut the presumption of delivery created by section 1635(c). Therefore, plaintiffs' three-day rescission window of section 1635(a) barred their request for rescission. The court also held that plaintiffs did not raise any specific objections to the accuracy of the disclosure statement during the first summary judgment proceedings. Therefore, the district court's finding was the law of the case and plaintiffs' allegations were waived. Even if the argument were not waived, plaintiffs cannot prevail because the alleged error was not a violation of TILA. View "Keiran v. Home Capital" on Justia Law