Author Archive for Mickey J. Lee – Page 2

9th Cir. Holds Consolidated ‘Bellweather Trial’ of Multiple Actions Did Not Meet CAFA’s ‘Mass Action’ Requirements

The U.S. Court of Appeals for the Ninth Circuit recently affirmed that consolidating multiple actions for pre-trial purposes and a bellweather-trial process is insufficient to justify the removal of those actions to federal court under the “mass action” provision of the Class Action Fairness Act (CAFA). In doing so, the Ninth Circuit rejected several arguments

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CD Calif. Cites Lack of Clear Regulatory Guidance in Dismissing ADA Claims Relating to Website Accommodations for Visually-Impaired

The U.S. District Court for the Central District of California recently dismissed a claim brought under the federal Americans with Disabilities Act (ADA) brought by a visually-impaired plaintiff who alleged that the defendant pizza company’s website did not permit users to complete their purchases using a screen-reading software program.  The plaintiff also alleged that the

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Indiana Supreme Court Rejects Borrowers’ Argument Bankruptcy Discharge Wiped Out Mortgage Loan, Lien

The Supreme Court of Indiana recently confirmed a mortgagee’s ability to seek an in rem judgment against property for which there was an outstanding lien balance after the borrowers obtained a discharge of their Chapter 7 bankruptcy. In so ruling, the Court distinguished the difference between an in rem and in personam judgment, and rejected

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3rd Cir. Holds HPA’s Auto-Term Date for PMI Uses Original Value, Not Modification Value

The U.S. Court of Appeals for the Third Circuit recently held that the calculation of the private mortgage insurance (PMI) automatic termination date under the federal Homeowners Protection Act, 12 U.S.C. § 4901 et seq., for modified loans is tied to the initial purchase price of the home, not the updated property value used for

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8th Cir. Upholds Class Settlement in ‘Excessive Property Inspection’ Case, Rejects Attempt to Add Trespass Claims

The U.S. Court of Appeals for the Eighth Circuit recently affirmed a district court’s approval of a proposed class settlement in an action arising from a mortgage loan servicer’s practice of automatically ordering and charging for drive-by property inspections on delinquent borrowers, holding that the district court did not abuse its discretion. In so ruling,

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6th Cir. Holds Mere Mention of Defense Not Enough to Defeat Predominance Under Rule 23

The U.S. Court of Appeals for the Sixth Circuit recently reversed a district court’s denial of class certification and dismissal of consolidated complaints alleging that a mortgage lender violated the federal Telephone Consumer Protection Act (TCPA) by sending “junk faxes” to businesses without their consent or a pre-existing business relationship. In so ruling, the Court

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5th Cir. Rejects FLSA ‘Loan Officer Overtime’ Collective Action Based on Opt-Out State Court Class Settlement

The U.S. Court of Appeals for the Fifth Circuit recently held that claims of an opt-out class in a previously-settled California state class action that released any existing federal Fair Labor Standards Act claims by mortgage loan officers against lenders that failed to pay them overtime were precluded by res judicata because the previous opt-out

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11th Cir. Rejects Late Recordation of Satisfaction Class Action Citing Spokeo

The U.S. Court of Appeals for the Eleventh Circuit recently rejected a putative class action against a mortgagee based on the alleged late recording of satisfactions of mortgage in supposed violation of New York law.

6th Cir. Holds Auto Dealer Not Excepted from Providing ECOA Adverse Action Notices

The U.S. Court of Appeals for the Sixth Circuit recently held that an automobile dealer is a “creditor” under the federal Equal Credit Opportunity Act that was not excepted from the requirement to provide adverse action notices, as the dealer did not “merely arrange for credit by referring applicants to lenders” as provided under Regulation

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5th Cir. Holds No Private Right of Action Under HUD Regulations for HECMs

The U.S. Court of Appeals for the Fifth Circuit recently held that HUD reverse mortgage regulations and guidelines do not give the borrower a private cause of action unless the regulations are expressly incorporated into the loan agreement. A copy of the opinion in Johnson v. World Alliance Financial Corp. et al is available at:  Link to

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ND Illinois Holds HPA Preempts Breach of Contract, UDAP Claims ‘Relating to’ HPA’s Requirements

The U.S. District Court for the Northern District of Illinois recently held that the federal Homeowners Protection Act, 12 U.S.C. § 4901, et seq., preempts state law UDAP and breach of contract claims, when the state law claims are based on allegations “relating to” the HPA’s requirements. A copy of the opinion in Ciolino v.

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Mass. SJC Holds HOA/COA May Obtain Successive 6-Month Priority Liens for Unpaid Common Expenses

The Supreme Judicial Court of Massachusetts recently held that a homeowners association may establish and enforce multiple contemporaneous liens for unpaid common expenses, each with a six-month period of priority over the first mortgage, by filing successive legal actions. A copy of the opinion in Drummer Boy Homes Association, Inc. v. Britton is available at:  Link

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