Articles Posted in Banking

by
The Trusts initiated before FINRA an arbitration proceeding against the eight individuals who had owned Banque Pictet as partners and others, including Pictet Overseas, seeking to recover losses from custodial accounts with Banque Pictet. Pictet Overseas and the Partners then filed an action in federal district court, seeking to enjoin the arbitration, contending that, even if Rule 12200 of the FINRA Code of Arbitration Procedure for Customer Disputes required Pictet Overseas to arbitrate certain claims before FINRA, it did not require Pictet Overseas or the Partners to arbitrate the Trusts' claims. The Eleventh Circuit affirmed the district court's ruling that the Trusts' claims were non-arbitrable and held that FINRA Rule 12200 did not require arbitration. In this case, the Trusts' claims did not arise in connection with Pictet Overseas' or the Partners' business activities. Therefore, the court affirmed the district court's order permanently enjoining the Trusts from arbitrating in a FINRA forum their claims against Pictet Overseas and the Partners. View "Pictet Overseas Inc. v. Helvetia Trust" on Justia Law

by
In these consolidated cases, plaintiffs alleged that their mortgage servicers, SLS and Caliber, breached plaintiffs' loan contracts, as well as an implied coverage of good faith and fair dealing, by charging inflated amounts for force-placed insurance. The Eleventh Circuit affirmed the district court's dismissal of the cases under Rule 12(b)(6) for failure to state a claim, holding that the filed-rate doctrine applied because plaintiffs challenged a rate filed with regulators. Therefore, plaintiffs' claims were barred because the filed-rate doctrine precluded any judicial action which undermined agency rate-making authority. View "Patel v. Specialized Loan Servicing, LLC" on Justia Law

by
12 U.S.C. 1715z-20(j) can not be read to prevent foreclosure pursuant to a reverse-mortgage contract that, by its terms, permits the lender to demand repayment immediately following a borrower's death, even if his or her non-borrowing spouse continues to live in the mortgaged property. The Eleventh Circuit held that the statute addressed and limited only the Secretary's authority—specifying the types of mortgages that HUD "may not insure"—and thus did not alter or affect the rights that a lender independently possessed under a reverse-mortgage contract. Therefore, the court affirmed the district court's grant of Live Well's motion to dismiss because, even if HUD should not have insured the mortgage at issue, section 1715z-20(j) did not alter or limit Live Well's right to foreclose under the terms of its valid mortgage contract. View "The Estate of Caldwell Jones, Jr. v. Live Well Financial, Inc." on Justia Law

by
The Eleventh Circuit affirmed the district court's grant of summary judgment for Wells Fargo, a mortgage servicer, in an action alleging that Wells Fargo failed to conduct a reasonable investigation into the accuracy of its credit reporting of her mortgage loan, in violation of the Fair Credit Reporting Act (FCRA). The court held that plaintiff could not prevail on her claim against Wells Fargo under section 1681s-2(b) of the FCRA without identifying some fact in the record establishing that the information Wells Fargo reported regarding her account was inaccurate or incomplete. In this case, regardless of whether plaintiff may have been confused about how her account would be reported to the credit rating agencies, and whether Wells Fargo could have better explained to her how the account would be reported, she did not meet her payment obligations under the note. Finally, any omissions did not render plaintiff's credit report misleading. View "Felts v. Wells Fargo Bank, N.A." on Justia Law

Posted in: Banking, Consumer Law

by
The Eleventh Circuit certified the following question to the Supreme Court of Georgia: 1) Whether Georgia's apportionment statute, O.C.G.A. 51-12-33, applies to tort claims for purely pecuniary losses against bank directors and officers; 2) whether section 51-12-33 abrogated Georgia's common-law rule imposing joint and several liability on tortfeasors who act in concert; and 3) whether, in a negligence action premised upon the negligence of individual board members in their decisionmaking processes, a decision of a bank's board of directors is a "concerted action" such that the board members should be held jointly and severally liable for negligence. View "Federal Deposit Insurance Corporation v. Loudermilk" on Justia Law

Posted in: Banking, Business Law

by
The Eleventh Circuit affirmed the district court's denial of RBC's motion to compel arbitration. Plaintiff held a checking account with RBC and filed suit alleging that RBC failed to properly warn him of possible overdrafts at points of sale when he used his debit card and impermissibly rearranged the order of debit-card transactions so as to process larger transactions before smaller transactions. The court found it unnecessary to address the questions of waiver or the district court's alternative holding. Rather, the court held that PNC failed to demonstrate the requisite meeting of the minds to support a finding that the parties agreed through the February 2013 amendment to arbitrate their then-pending litigation. View "Dasher v. RBC Bank (USA)" on Justia Law

by
The Eleventh Circuit affirmed the district court's denial of RBC's motion to compel arbitration. Plaintiff held a checking account with RBC and filed suit alleging that RBC failed to properly warn him of possible overdrafts at points of sale when he used his debit card and impermissibly rearranged the order of debit-card transactions so as to process larger transactions before smaller transactions. The court found it unnecessary to address the questions of waiver or the district court's alternative holding. Rather, the court held that PNC failed to demonstrate the requisite meeting of the minds to support a finding that the parties agreed through the February 2013 amendment to arbitrate their then-pending litigation. View "Dasher v. RBC Bank (USA)" on Justia Law

by
Cita Trust appealed the district court's dismissal of its complaint against Fifth Third Bank in a commercial contract dispute action. The Eleventh Circuit affirmed, holding that the district court did not err by dismissing the complaint as untimely and enforcing the contractual one-year limitation period. In this case, the agreement's limitation provision was reasonable, clear, and unambiguous. Furthermore, the district court did not abuse its discretion when it denied Cita leave to amend its complaint, because Cita did not properly move for leave to amend. View "Cita Trust Company AG v. Fifth Third Bank" on Justia Law

by
The M/V Deep Blue purchased fuel from a supplier, the supplier purchased the fuel from an affiliate, and the affiliate subcontracted with Radcliff. Radcliff subsequently asserted a maritime lien on the Deep Blue in a bid to recover directly from the ship, giving rise to this litigation. The Fifth Circuit affirmed the district court's determination that Radcliff did not have a lien on the Deep Blue. Instead, a lien had arisen in favor of the global fuel supplier, and was duly assigned to ING Bank, an intervenor in the suit. View "Barcliff, LLC v. M/V Deep Blue" on Justia Law

by
The Eleventh Circuit reversed the district court's denial of KeyBank's motion to compel arbitration on grounds of unconscionability. The court looked to Ohio law to determine where plaintiff consented to arbitrate; plaintiff consented to the 1997 Agreement and its arbitration provision; plaintiff's argument that he did not assent to the revised version of the arbitration provision that appearred in the 2009 Agreement failed; and summary judgment was warranted in this case. The court also held that the district court erred in finding the 2009 Arbitration Provision unenforceable under applicable state law. The court remanded to the district court to compel arbitration. View "Johnson v. Keybank National Assoc." on Justia Law