Justia Banking Opinion Summaries

Articles Posted in US Court of Appeals for the Ninth Circuit
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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

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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

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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

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Anaya Law Group, a debt collector, filed suit in state court to collect an unpaid credit card debt, but the complaint overstated both debtor's principal due and the applicable interest rate. Debtor then filed suit against Anaya in federal court for violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692 et seq., and of California's Rosenthal Fair Debt Collection Practices Act. The district court granted summary judgment to Anaya. The Ninth Circuit held, however, that the false statements made by Anaya were material because they could have disadvantaged a hypothetical debtor in deciding how to respond to the complaint. Accordingly, the panel vacated summary judgment as to the FDCPA claim and remanded. In regard to the Rosenthal Act claim, the panel affirmed summary judgment on an alternative ground. The panel held that Anaya corrected the misstatements within fifteen days of discovering the violation and thus satisfied the requirements necessary to avail itself of a defense under the Rosenthal Act. View "Afewerki v. Anaya Law Group" on Justia Law