Financial Services Blog

Showing 8 posts in Unfair Trade Practices.

Indiana Supreme Court Reaffirms Limits To Jury Trials In Foreclosure Actions

The Indiana Supreme Court recently clarified the standard for when defendants in mortgage foreclosure actions are entitled to have a jury, rather than a judge, consider their defenses and counterclaims. Lucas v. U.S. Bank, N.A., 953 N.E.2d 457 (Ind. 2011). Plaintiff bank filed an action against two borrowers to enforce the terms of a promissory note and to foreclose the mortgage that secured the note. The borrowers asserted various statutory and common law defenses and counterclaims and filed a third-party complaint against the loan servicer, asserting similar common law and statutory claims. The borrowers also filed a demand for a jury trial “on all issues deemed so triable.” Read More ›

Indiana Court Of Appeals Invalidates Arbitration Agreement That Selected NAF As Arbitrator On The Ground It Is Impossible To Perform

In Geneva-Roth Capital, Inc. v. Edwards, the Indiana Court of Appeals considered an issue of first impression in Indiana: when the parties to an arbitration agreement select a specific arbitrator, and that arbitrator is no longer available, does the agreement fail for impossibility? Cause No. 49A02–1101–PL–43, 2011 WL 5566216 (Ind. Ct. App. Nov. 16, 2011). In that case, the defendant lender extended a small, short-term loan to the plaintiff borrower. The loan agreement included an arbitration provision, which provided: Read More ›

Northern District Of West Virginia Confirms Breach Of Covenant Of Good Faith And Dealing Is Not A Stand-Alone Cause Of Action In West Virginia

Unfortunately, lenders in West Virginia are routinely faced with lawsuits alleging that, in essence, they may not foreclose on a property before offering a loan modification. Borrowers’ counsel generally alleges breach of contract based upon an “implied contractual duty to act in good faith.” This allegation is routinely based upon an argument that lenders have discretion under their Deed of Trust to modify a loan and must exercise that discretion in good faith by offering modifications rather than foreclosing. Read More ›

Assignee Liability Under West Virginia Consumer Credit Protection Act

Bishop v. Quicken Loans, Inc., 2010 WL 3522128 (S.D.W.Va.). In December 2006, Originator Defendant approached Plaintiffs relative to refinancing their mortgage. Based on an alleged inflated appraisal of their home, Plaintiffs obtained an Option Adjustable Rate Mortgage (the “ARM Note”) in the amount of $133,600. Originator Defendant did not inform Plaintiffs that the interest accruing on the ARM Note would exceed their minimum scheduled payments, such that their loan balance might increase from month to month. Read More ›

Unconscionability In West Virginia Bankruptcy Court

In In re Kohls, 2007 LEXIS 76 (Bankr. N.D.W.Va. 2007), the debtor filed this adversary proceeding against the Bank to cancel indebtedness and recover damages related to a $34,864 loan that the Bank made to the Debtor on the grounds that the loan was unconscionable at the time it was executed in violation of W. Va. Code § 46A-2-121. Read More ›

Breach Of Contract And Fraud Claims Not Available Where Lender Attempts To Renegotiate Terms Of Demand Instrument

In Reger Development, LLC v. National City Bank, National City advanced Reger a line of credit fund potential development opportunities. 592 F.3d 759 (7th Cir. 2010). The contract documents stated that Reger would pay the loan in full immediately upon National City’s demand. Read More ›

The Office of Thrift Supervision Seeks Guidance From the Federal Trade Commission on Unfair and Deceptive Trade Practices

In recent months, the Office of Thrift Supervision (“OTS”) has indicated that it intends to take an increasingly active role in regulating the business practices of banking institutions under its regulatory authority.  On August 6, 2007, the OTS announced the issuance of an Advance Notice of Proposed Rulemaking (“ANPR”) seeking public comment ..... Read More ›

After Successfully Weathering a Decade or More of State Deceptive Trade Practice Claims, Banks Now Face the Rising Tide of Federal Enforcement Proceedings

Until relatively recently, banks have not been frequent targets under state or federal unfair or deceptive trade practice laws. During the last decade, however, this has started to change and lawsuits against banks have been steadily on the rise. Read More ›

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Attorney Spotlight

Christopher C. Tieke is an associate in Frost Brown Todd's Louisville office, focusing his practice on business litigation. He graduated from the University of Cincinnati College of Law, with magna cum laude honors; served as an Associate Member of the University of Cincinnati Law Review; and participated in the Entrepreneurship and Community Development Clinic.

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