Justia Banking Opinion Summaries

The Fifth Circuit affirmed the district court's dismissal of appellants' respective claims against U.S. Bank and Ocwen. The court held that there was complete diversity of citizenship among the parties and affirmed the district court's denial of SGK and Katz's motion to remand; because there was no genuine dispute of material fact concerning U.S. Bank's authority to collect on the Note and enforce the Deed of Trust, the court affirmed the district court's grant of U.S. Bank's motion for summary judgment; the court affirmed the district court's denial of Weinreb's standing challenge; Weinreb's fraudulent representation claim was properly dismissed; and for the same reasons the court affirmed the summary judgment dismissal of SGK and Katz's original claims and the dismissal of Weinreb's fraudulent misrepresentation claim, the court held that SGK and Katz's attempts to pursue these claims would have been futile and the district court did not abuse its discretion by disallowing the amendment. View "SGK Properties, LLC v. U.S. Bank National Assoc." on Justia Law

Renasant Bank purchased a Financial Institution Bond (the Bond), which covers losses caused by employees only when certain criteria are met. A Mississippi statute, Miss. Code Ann. 81-5-15, requires bank employees to post fidelity bonds that protect against "acts of dishonesty." The Fifth Circuit held that, assuming arguendo that the Bond was governed by section 81-5-15, the Bond's terms were enforceable as written because they were consistent with the statute. The court agreed with the district court that the Bank failed to produce evidence necessary to support its breach-of-contract claim and thus was entitled to summary judgment. View "Renasant Bank v. St. Paul Mercury Insurance Co." 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

The Fifth Circuit granted movant's motion to stay the FDIC's order assessing a civil penalty against movant pending the resolution of the merits of the petition for review or further order of the court. Movant alleged, among other things, that the FDIC ALJ was an inferior "Officer of the United States" who holds his office in violation of the Appointments Clause. The court held that movant has established a likelihood of success on the merits of his Appointments Clause challenge, that irreparable harm would result absent a stay, and that both the balance of hardships and the public interest favor a stay. View "Burgess v. FDIC" 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

The Fifth Circuit affirmed the dismissal of plaintiff's claims relating to his mortgage and the foreclosure of his home. The court held that the district court did not err in determining that diversity jurisdiction exists in this case; the district court did not err in dismissing plaintiff's claims for lack of standing to foreclose, quiet title, and breach of contract given that each of those claims was based on the assignment being void; in light of the district court's reasoning and the circumstances of this case, the district court did not abuse its discretion in denying plaintiff leave to replead his promissory estoppel claim; and plaintiff waived his argument that the district court erred in denying his motion to amend. View "Bynane v. The Bank of New York Mellon" on Justia Law