The Federal Trade Commission has released a report examining the benefits, potential risks, and legality of the use of big data in business. Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues focuses on how big data is used after it is collected and how that information could result in discrimination against consumers. The primary goal of the report is to provide businesses with important information on the relevant laws to big data analytics, as well as guidelines on how to use big data effectively while remaining compliant and non-discriminatory, according to the FTC. “Big data’s role is…
The U.S. Court of Appeals for the Fourth Circuit recently rejected a challenge to a class action settlement by a group of consumers objecting to the release of statutory and punitive damages claims – but not claims for actual damages – in exchange for non-monetary injunctive relief under the federal Fair Credit Reporting Act (FCRA), holding that the district court did not abuse its discretion in approving the settlement or awarding attorney’s fees to class counsel. A copy of the opinion in Gregory Thomas Berry et al. v. LexisNexis Risk & Information Analytics Group Inc. et al. is available at: Link to…
Joining several other federal district courts around the country, the U.S. District Court for the Eastern District of New York recently granted a joint motion to stay proceedings in a putative class action lawsuit alleging violation of the federal Telephone Consumer Protection Act (TCPA). The Court found that appeals currently pending before the Supreme Court of the United States would likely result in controlling determinations as to: (1) whether a Rule 68 offer of judgment renders a matter moot; (2) whether a plaintiff has standing to pursue his claims in the absence of actual damages or injury in fact; and…
The District Court of Appeal of Florida, Second District, recently dismissed the appeal of a foreclosure judgment by a third party purchaser of the collateral property, where the third party purchased the collateral property while it was the subject of a foreclosure proceeding and a recorded lis pendens. In so ruling, the Appellate Court confirmed a third party purchaser had no standing to appeal a final judgment of foreclosure where the purchaser did not appeal a prior denial of its motion to intervene, even though the third party purchaser’s name was erroneously placed in the style of the uniform final…
The District Court of Appeal of the State of Florida, Fifth District, recently held that the trial court erred by denying the borrower’s motion to involuntarily dismiss a foreclosure action, because the plaintiff mortgagee’s counsel failed to properly introduce evidence to reestablish the lost note, prove that it had standing to foreclose, prove the amount owed, and demonstrate compliance with the mortgage’s condition precedent of giving notice of default. A copy of the opinion in Figueroa v. Federal National Mortgage Association, etc., et al is available at: Link to Opinion. A servicer foreclosed alleging that the borrower defaulted under the note by failing…
The District Court of Appeal of the State of Florida, Fourth District, recently held that a lender cannot be held liable for its customer’s suicide because it does not have any special relationship with the customer that gives rise to a duty to prevent the customer’s suicide. A copy of the opinion is available at: Link to Opinion. The personal representative of the estate of a mentally ill decedent sued the decedent’s bank and its senior vice president for wrongful death. The amended complaint alleged that the decedent suffered from a type of severe anxiety that made him unable to…
In a non-precedential ruling, the U.S. Court of Appeals for the Seventh Circuit recently affirmed a district court ruling finding that telephone calls placed to a pro se consumer’s cellular telephone number did not violate the federal Telephone Consumer Protection Act (TCPA) because the calls were placed manually, and not using an automatic telephone dialing system (ATDS). In so ruling, the Seventh Circuit focused on the company representative’s declaration and the company’s call log establishing that the calls were initiated by a live representative, who made the calls by entering all numbers by hand. A copy of the opinion in Wayne…
Florida’s Third District Court of Appeal recently reversed a trial court’s mortgage foreclosure judgment against non-signatory co-owners, holding that ratification did not apply where the non-signatory owners received no benefit from the loan proceeds and did not authorize an attorney-in-fact to sign the mortgage on their behalf. In so ruling, the Appellate Court rejected the mortgagee’s efforts to impose an equitable lien on the collateral property. A copy of the opinion in Wells Fargo Bank, N.A. v. Clavero, et al. is available at: Link to Opinion. In October 2005, a mother and father, who had purchased their home more than 30 years…
The U.S. Court of Appeals for the Fifth Circuit recently rejected common law fraud and fraudulent inducement allegations brought by two borrowers arising from their default on a mortgage loan. In so ruling, the Fifth Circuit affirmed the district court’s order granting summary judgment in the mortgagees’ favor due to insufficient evidence of damages, and held that alleged misrepresentations in the course of loan modification efforts did not increase the arrearages as the arrearages would otherwise have been due under the terms of the mortgage loan. A copy of the opinion in Ronald Lawrence, Jr., et al v. Federal Home Loan…
The District Court of Appeal of Florida, Second District, recently affirmed the trial court’s denial of a third party record title holder’s motion to cancel a mortgage foreclosure sale, even though the third party movant acquired title in a prior homeowners association lien foreclosure action, and even though the third party movant alleged that the mortgagee thwarted its redemption rights by supposedly failing to provide an estoppel letter. A copy of the opinion in Whitburn, LLC v. Wells Fargo Bank, N.A. is available at: Link to Opinion. In December 2012, a mortgagee filed a foreclosure action along with a lis pendens against…
The County Court of the 13th Judicial Circuit in and for Hillsborough County, Florida, recently struck a mortgagee’s and servicer’s offer of judgment in an action under the Florida Consumer Collection Practices Act, holding in a matter it deemed of great public importance that the FCCPA preempts Florida’s Offer of Judgment statute. A copy of the order in Hall, Harold v. Deutsche Bank National Trust Company is available here: Link to Order. In May 2013, a borrower filed a one-count complaint against defendants, a mortgagee and its loan servicer, alleging a violation of the FCCPA. The defendants filed an offer of judgment pursuant…
The U.S. Court of Appeals for the Eighth Circuit recently affirmed summary judgment against the seller and originator of mortgage loans and in favor of the purchaser because the originator breached the purchase and sale agreement by refusing to cure or repurchase eight of the 11 loans. A copy of the opinion in CitiMortgage, Inc. v. Chicago Bancorp, Inc. is available at: Link to Opinion. The plaintiff mortgage loan investor purchased mortgage loans originated by the defendant lender in 2004. The plaintiff’s business involved re-selling most of its loans to other investors in the secondary mortgage market. The purchase and sale agreement required the…