On December 3, 2015, the Eleventh Circuit issued an opinion that has carved a path for plaintiffs challenging their communications with loan servicers. The decision, Prescott v. Seterus, Inc., reversed a grant of summary judgment in favor of the defendant, Seterus, Inc. — Fed.Appx. —, 2015 WL 7769235 (S.D. Fla.,…
Last month, the United States District Court for the Eastern District of California issued the latest in a string of decisions denying class certification in cases of alleged misconduct regarding residential mortgage loan modifications. Beginning in 2010 and 2011, mortgage servicers saw a marked increase in cases challenging their loan modification…
We have an update on Campbell-Ewald, one of the Supreme Court cases we were monitoring last fall. While, contrary to our prediction, the majority decision in Campbell-Ewald, 577 U.S. ___ (2016) appears to deal a blow to companies seeking a mechanism to settle class actions effectively by offering complete relief to…
Often overlooked by lenders and servicers, sometimes striking a deal with the Chapter 7 Trustee in bankruptcy court, is the more prudent and cost effective approach to resolving frivolous lawsuits filed by defaulting borrowers in state court. In Brumfiel v. Lewis, Chapter 7 Trustee, et al. (In re Lisa Kay…
David Permut, a partner in Goodwin Procter’s Consumer Financial Services Litigation Practice will speak on the panel ” Focus on Class Actions: New Trends in Certification Motions; the Latest on Early Resolution and Settlement Strategy; Recent CAFA and Removal Developments; and Reviewing Campbell-Ewald v. Gomez on Rule 68, Offering Relief…
Facing yet another issue involving the arbitration of consumer disputes, the United States Supreme Court on December 14, 2015 held that a class action waiver clause was valid even when the contract incorporated state law standards that would have voided the waiver. The decision continued the Court’s trend toward enforcement…
The US Supreme Court’s October 2015 term includes three cases that may have important implications for class action litigation: Spokeo Inc. v. Robins et al., 13-1339, Campbell-Ewald Co. v. Gomez, 14-857, and Tyson Foods, Inc. v. Bouaphakeo, 14-1146. In each case, the Court will consider a procedural question whose answer…
From origination through final payoff, plaintiffs’ counsel look for claims in just about every aspect of the relationship between borrowers and their mortgage lenders. Recently, scrutiny has turned to property inspections carried out during default servicing. Plaintiffs’ lawyers have filed several class-action suits alleging that inspection fees violate mortgage terms, state…
**EDITOR’S NOTE: This post was guest-authored by Goodwin Procter partner Joe Yenouskas and associate Alyssa Sussman. Both are members of Goodwin Procter’s Consumer Financial Services Litigation Group.** A series of putative class actions have been filed recently in New York federal courts by borrowers alleging that their mortgage satisfactions were not timely…
A U.S. District Judge in the Northern District of Illinois recently granted summary judgment in favor of defendant PNC Bank on a borrower’s promissory estoppel and Illinois Consumer Fraud Act (ICFA) claims in connection with PNC’s HAMP procedures. In its August 25, 2015 decision the court found that PNC’s actions…
On August 21, 2015, the Sixth Circuit issued its widely anticipated decision in Hill v. Homeward Residential, Inc., No. 14-4168 (6th Cir. August 21, 2015), which affirmed a jury verdict that found Homeward Residential, Inc. had plaintiff Hill’s prior express consent to call him using an auto-dialer. The case is significant because plaintiff Hill…
On August 3, 2015, the 11th Circuit held in Ewing Industries Corp. v. Bob Wines Nursery, Inc., No. 14-13842, 2015 WL 4605234 (11th Cir. Aug. 3, 2015) that the pendency of a purported class action does not toll the limitations period for a later class action seeking to represent the same…
Last week, the Seventh Circuit reversed its prior circuit precedent regarding whether a Rule 68 offer of judgment moots a case. In Chapman v. First Index, Inc., the Seventh Circuit considered the question of mootness as well as whether the United States District Court for the Northern District of Illinois erred…
The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…
Editor’s Note: This post was guest-authored by Joseph Yenouskas, a partner in Goodwin Procter’s Consumer Financial Services Litigation Group who focuses on general civil litigation in federal and state trial and appellate courts, with a particular emphasis on defending financial institutions and mortgage lenders in complex consumer class action lawsuits. The…
Last week, the United States Supreme Court granted cert in Bouaphakeo v. Tyson Foods, Inc., a Fair Labor Standards Act (“FLSA”) case with potentially wide reaching implications in federal class actions. In Bouaphakeo, plaintiffs alleged that they were entitled to overtime for time spent putting on (“donning”) and taking off…
A national bank can charge an interest rate that exceeds state law maximums, but the bank’s assignee cannot, the U.S. Court of Appeals for the Second Circuit ruled recently, in a decision that could impact the ability of debt purchasers and others to rely on an originating bank’s federal preemption. The…
Attempts by county governments to obtain real property transfer taxes from the Government Sponsored Entities (GSEs) were stifled again recently, this time by a January 16, 2015, ruling from the U.S. Court of Appeals for the Eleventh Circuit, which affirmed dismissal of six cases brought by counties against Fannie Mae,…
**UPDATE: On January 20, 2015, the U.S. Supreme Court DENIED the Petition for Writ of Certiorari in the Iskanian matter, leaving the CA Supreme Court’s controversial decision in place.** U.S. Supreme Court precedent protecting the enforceability of arbitration agreements under the Federal Arbitration Act, 9 U.S.C. § 1 et seq….
As we have previously opined, the decision of whether to remove a case can be critically important in state-court-filed class actions. Despite the importance of this decision, the time afforded defendants to weigh their options—thirty days—is minimal. In that short time, defendants must weigh the costs and benefits of both…