Justia Banking Opinion Summaries

In this lawsuit arising out of a foreclosure sale the First Circuit affirmed the district court's dismissal of Edythe Dyer's claims arguing that U.S. Bank was not a proper party to utilize the statutory power of sale, holding that U.S. Bank was authorized to exercise the statutory power of sale and that Dyer's Mass. Gen. Laws ch. 93A claim against Wells Fargo Bank, N.A. was properly dismissed.Edythe Dyer executed a promissory note to Dreamhouse Mortgage Corporation and granted a mortgage on her property to Mortgage Electronic Registration Systems, Inc. (MERS). MERS assigned the mortgage to U.S. Bank. Wells Fargo was U.S. Bank’s servicer of the loan. U.S. Bank later notified Dyer that it intended to foreclose on the property by utilizing the statutory power of sale provided for in Mass. Gen. Laws ch. 183, 21. Dyer filed suit naming U.S. Bank and Wells Fargo as defendants. The magistrate judge granted Defendants’ motion for judgment of the pleadings and dismissed all of Dyer’s claims. The First Circuit affirmed, holding (1) none of Dyer's arguments as to why U.S. Bank was not authorized to exercise the statutory power of sale had merit; and (2) the magistrate judge correctly dismissed Dyer’s Massachusetts General Laws Chapter 93A claim against Wells Fargo. View "Dyer v. Wells Fargo Bank, N.A." on Justia Law

Deutsche Bank National Trust Company sought to appeal a circuit court order in a foreclosure action it brought against Dortha and Randy Karr. The Alabama Supreme Court determined the order appealed from was not a final judgment, thus it dismissed the Bank's appeal. View "Deutsche Bank National Trust Company v. Karr" on Justia Law

In this dispute between a secured lender (Bank) and a grain elevator (Elevator) the Supreme Court reversed in part the district court's judgment in favor of the Bank, holding that the district court erred by applying the discovery rule but otherwise did not err.The Bank filed this civil action alleging damages for drying and storage charges withheld in a three-year period. The Bank asserted that the Elevator had a junior interest to the Bank's prior perfected security interests. The Elevator asserted affirmative defenses of, among other things, failure to state a claim and unjust enrichment. The district court granted the Bank's motion for summary judgment and denied the Elevator's motion for summary judgment. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) correctly applied the two-year limitation period in Iowa Code 614.1(10), which barred the Bank's claims filed more than two years from the date of sale of goods subject to its perfected security interest; (2) erred by applying the discovery rule allowing the Bank to recover on transactions that occurred more than two years before it filed its civil action; and (3) correctly ruled that the Bank's prior perfected security interest trumped the Elevator's claim for storage and drying costs. View "MidWestOne Bank v. Heartland Co-op" on Justia Law

The Supreme Court affirmed the district court's order granting summary judgment in favor of Sisters of Charity of Leavenworth Health System, Inc. (SCL) on Cheryl Bratton's claims, holding that the district court did not err by granting summary judgment to SCL.This case stemmed from SCL's practice of issuing refunds to its patients, for such reasons as overpayment on an account, in the form of prepaid MasterCard debit cards issued through Bank of America. Plaintiff brought this suit alleging, among other claims, constructive trust based on unjust enrichment, unfair trade practices under the Montana Consumer Protection Act (MCPA), money had and received, and declaratory judgment. During discovery, SCL asked Bank of America to issue checks to Bratton for her refunds, which Bank of America did. The district court granted summary judgment for SCL. The Supreme Court affirmed, holding that the district court did not err by granting summary judgment to SCL on Bratton's claims and by denying Bratton's cross motions for summary judgment. View "Bratton v. Sisters of Charity of Leavenworth Health System, Inc." on Justia Law

Plaintiff Robert Weimer, Jr., purchased real property in Carnelian Bay in 1993. He refinanced the mortgage in 2006 with a loan from defendant Bank of America, N.A. (BANA). After defaulting, plaintiff entered into a loan modification process with BANA. Subsequently, loan servicing was transferred, successively, to defendants Specialized Loan Servicing, LLC (SLS) and Nationstar Mortgage, LLC (Nationstar). According to plaintiff, BANA, SLS, and Nationstar successively each engaged in deliberate and negligent misconduct in the loan modification process. In 2014, BANA transferred beneficial interest in the loan to defendant U.S. Bank, N. A. (U.S. Bank), as trustee for the Certificateholders of Banc of America Funding Corporation Mortgage Pass Through Certificates Series 2007-7. Eventually, Nationstar, acting as U.S. Bank’s agent, recorded a notice of trustee’s sale and had an agent enter onto the property and change the locks. After plaintiff commenced this action, BANA, U.S. Bank, and Nationstar demurred to a first amended complaint. The trial court sustained the demurrer without leave to amend as to BANA, concluding that the action against it was time-barred. As to the other defendants, the court sustained the demurrer with leave to amend. Plaintiff filed a second amended complaint, asserting intentional and negligent misrepresentation, negligence, trespass to land, seeking declaratory relief, and asserting violations of the unfair competition law. U.S. Bank and Nationstar demurred, SLS separately demurred, and the trial court sustained the demurrers without leave to amend. On appeal, plaintiff contended the trial court erred in concluding that the action against BANA was time-barred because BANA’s actions were part of a civil conspiracy with the other defendants, and the timeliness of plaintiff’s action against BANA must be measured from the last overt act. Plaintiff further asserted the trial court erred in sustaining the demurrers to the second amended complaint because he sufficiently stated each cause of action. Furthermore, plaintiff asserted the trial court should have granted him leave to amend, however, he largely contended his complaint required no amendment. In the unpublished portion of its opinion, the Court of Appeal concluded that the action as asserted against BANA was indeed time-barred. The Court further concluded plaintiff sufficiently stated causes of action sounding in intentional and negligent misrepresentation and violations of the unfair competition law against the remaining defendants. In the published portion of its opinion, the Court concluded the remaining defendants had a duty of care and that plaintiff sufficiently stated a cause of action for negligence against them. Therefore, the Court reversed the judgments of dismissal as to U.S. Bank, SLS, and Nationstar and reversed the orders sustaining the demurrers as to the causes of action in the second amended complaint for intentional misrepresentation, negligent misrepresentation, negligence, and violations of the unfair competition law. In all other respects, the judgments were affirmed. View "Weimer v. Nationstar Mortgage, LLC" on Justia Law

The Supreme Court affirmed the decision of the district court granting summary judgment in favor of U.S. Bank seeking to foreclose on a defaulted loan, holding that because U.S. Bank presented evidence to meet its burden to show that the original note was lost, it was entitled to enforce the note because the facts established that the action may proceed.U.S. Bank acquired the deed of trust secured by Appellant's residence and sought to foreclose on the defaulted loan. The original lender did not execute an assignment of the note to U.S. Bank when assigning the deed of trust to U.S. Bank. The loan servicer, however, swore an affidavit certifying that the note was lost. The district court granted summary judgment in favor of U.S. Bank. The Supreme Court affirmed, holding that because U.S. Bank showed by a preponderance of the evidence that it acquired ownership of the note from a party that had the right to enforce it, that the note was not lost as a result of a transfer or lawful seizure, and that the note could not be reasonably obtained, U.S. Bank satisfied the requirements of Nev. Rev. Stat. 104.3309 and was entitled to seek a judicial foreclosure on Appellant's default. View "Jones v. U.S. Bank National Ass'n" on Justia Law

The Second Circuit affirmed the district court's multiple orders granting summary judgment in favor of plaintiff and holding Defendant March liable for interest at a default rate of 24 percent per annum dating back to February 1, 2008. In this case, the court affirmed the district court's grant of summary judgment in favor of Madison Street; the district court's order confirming the interest calculations of the court-appointed referee; and the district court's denial of reconsideration or to adjust its award of per diem interest to Madison Street based on the delayed "entry of judgment." The court considered defendant's remaining arguments and concluded that they were either forfeited or without merit. View "1077 Madison Street, LLC v. March" on Justia Law

The Supreme Court reversed the foreclosure decree entered by the district court giving priority under a future-advances clause to the full amount of credit extended by the first lienholder rather than the maximum amount set forth in the notice provision of the first lienholder's mortgage, holding that the first lienholder's priority was capped at $148,000.A bank made a series of loans to a farmer and obtained a mortgage with a future-advances clause on a farm property. The bank's mortgage contained language stating that the mortgage secured credit in the amount of $148,000. The farmer later took out a loan from a second bank, also secured in part by the same farm property. When the first bank filed a foreclosure proceeding, the parties disputed whether the first bank's lien had priority for all amounts due to the first bank or only up to $148,000. The district court found that the first bank's priority was not limited to $148,000 but extended to all debt secured by the mortgage. The Supreme Court reversed, holding (1) the first bank's priority was capped at $148,000, plus interest; and (2) the first bank was not allowed to collect default interest at eighteen percent as part of its first-priority lien where there was no written agreement to pay that rate. View "Blue Grass Savings Bank v. Community Bank & Trust Co." on Justia Law

In 1987, Whitaker opened commodity futures trading accounts that eventually were assigned to Wedbush. Whitaker did not enter into a new customer or security agreement with Wedbush. Wedbush held Whitaker’s funds in customer segregated accounts at BMO Harris, which provided an online portal for Wedbush to process its customers' wire transfers. In December 2014, Wedbush received emailed wire transfer requests purporting to be from Whitaker but actually sent by a hacker. Wedbush completed transfers to a bank in Poland totaling $374,960. Each time, Wedbush sent an acknowledgment to Whitaker’s e-mail account; the hacker apparently intercepted all email communications. Whitaker contacted Wedbush after receiving an account statement containing an incorrect balance. After Wedbush refused Whitaker’s demand for the return of the transferred funds, Whitaker filed suit seeking a refund under the UCC (810 ILCS 5/4A-101). The circuit court rejected the UCC counts, stating that Wedbush had not operated as a “bank” under the UCC definition. The appellate court affirmed.The Illinois Supreme Court reversed, rejecting an argument that an entity may not qualify as a bank if it does not offer checking services. Courts construe the term “bank” in article 4A liberally to promote the purposes and policies of the UCC. The term “includes some institutions that are not commercial banks” and that “[t]he definition reflects the fact that many financial institutions now perform functions previously restricted to commercial banks, including acting on behalf of customers in funds transfers.” View "Whitaker v. Wedbush Securities, Inc." on Justia Law

The Supreme Judicial Court affirmed the judgment of foreclosure entered by the district court in favor of U.S. Bank, holding that the district court did not err in concluding that U.S. Bank had standing to foreclose.U.S. Bank filed a complaint for foreclosure. At a hearing, the court admitted, over Jim Gordon's objection, a copy if a 2016 "Ratification of Assignment" stating that Mortgage Electronic Registration Systems, Inc., as nominee for EquiFirst Corporation, assigned the mortgage in this case to U.S. Bank. The court ultimately concluded that U.S. Bank had standing to foreclose pursuant to the 2016 ratification and entered a judgment of foreclosure in favor of U.S. Bank. The Supreme Judicial Court affirmed, holding (1) the court did not abuse its discretion by admitting the copy of the 2016 ratification; and (2) the court did not err in concluding that U.S. Bank had standing. View "U.S. Bank National Association v. Gordon" on Justia Law