Eighth Circuit Holds Borrowers’ Acknowledgment of Receipt of TILA Disclosure Defeated Their TILA Claim

In a decision approved for publication, the United States Court of Appeals for the Eighth Circuit recently affirmed the district court’s decision granting a lender’s motion for summary judgment and holding that the borrowers’ signed acknowledgement that they had received the requisite number of Truth in Lending Act (“TILA”) disclosures created a rebuttable presumption that the borrowers could not overcome.

Second Circuit Holds Garnishees’ Settlement Agreement Violated Restraining Notices Despite Being Approved by State Court

The United States Court of Appeals for the Second Circuit recently affirmed a district court’s holding that third-party garnishees violated restraining notices by disbursing monies pursuant to a settlement agreement approved by the state court.  See CSX Transp., Inc. v. Island Rail  Terminal, Inc., 879 F.3d 462 (2d Cir. 2018).  The underlying breach of contract suit arose out of Island Rail Terminal, Inc.’s (“Island Rail”) 2012 purchase of substantially all of the assets of Emjay Environmental Recycling, Ltd. (“Emjay”). 

United States District Court for the District of Maryland Grants Defendant’s Motion to Dismiss For Class Action Kickback Scheme Based On Statute Of Limitations

The United States District Court for the District of Maryland recently held that Plaintiffs’ purported class action claim alleging a kickback scheme against Bank of America, N.A. (“BOA”) was barred by the statute of limitations because Plaintiffs did not meet the requirements for equitable tolling.  See Dobbins v. Bank of Am., N.A., 2018 WL 620456 (D.Md. Jan. 30, 2018). 

New Jersey Appellate Court Holds Trial Court Must Determine Fair Market Value Credit of Foreclosed Properties to Ensure Lender Did Not Receive a Windfall

In a decision approved for publication, New Jersey’s Appellate Division recently remanded an action to the Chancery Division in order to determine whether a lender improperly collected more than one-hundred percent of the debts owed to it.  See Brunswick Bank & Tr. v. Heln Mgmt. LLC, 2018 WL 987809 (N.J. Super. Ct. App. Div. Feb. 21, 2018).

Pennsylvania Appellate Court Affirms Order Granting of Summary Judgment to Title Insurer Based on Survey Exception

The Superior Court of Pennsylvania recently affirmed a trial court’s order granting a title insurance company summary judgment based on a defect that a survey of the premises would have shown.  See Kreider v. Correia, 2018 WL 359285 (Pa. Super. Ct. Jan. 11, 2018).  In the case, the plaintiff insured purchased a property after the lender had obtained it via a foreclosure (the “Property”).

New Jersey District Court Finds Defendants Liable to Title Insurance Company for Conversion, But Factual Issues Preclude Summary Judgment on Fraud Claim

In an action by plaintiff title insurance company against defendants for claims of fraud and conversion arising out of defendants’ sale of their house and the use of the proceeds thereafter, the United States District Court for the District of New Jersey granted in part plaintiff’s motion for summary judgment as to the conversion claim, but denied the motion with respect to the fraud claim, acknowledging that plaintiff has put forward circumstantial evidence that the husband committed fraud but ultimately determining that there remains genuine issues of fact.

New York’s Second Department Holds Commercial Tenant’s Waiver of the Right to Bring a Declaratory Judgment Action Was Enforceable

In a matter of first impression, New York’s Second Department recently held that a waiver of the right to declarative relief in a commercial lease was enforceable and not violative of public policy. See 159 MP Corp., et al. v. Redbridge Bedford, LLC, 2018 WL 635946 (2d Dept. Jan. 31, 2018). In the case, the plaintiffs were two related entities that had entered into nearly identical leases for units in the subject building.

New York Federal Court Grants Insured’s Motion To Amend Complaint

The United States District Court for the Southern District of New York recently granted the plaintiff-insured’s motion for leave to amend its complaint and to add its affiliate as a new co-plaintiff over the title insurance companies’ objections.  See Morris Builders, L.P. v. Fidelity National Title Insurance Co. et. al., 2017 WL 5032996 (S.D.N.Y. 2017).  In 1989, the defendant title insurance companies issued title insurance policies to plaintiff to cover plaintiff’s long-term development lease of a property.