Southeast Financial Litigation Monitor

Legal Developments Affecting the Financial Services Industry in Alabama, Florida, Georgia & Mississippi

Latest from Southeast Financial Litigation Monitor

The Eleventh Circuit Continues to Build on Article III Standing Requirement

By Gregory C. Cook, Jason Tompkins & Meghan E. Pieler

February 15, 2021

In early November, we wrote about a new Eleventh Circuit decision on Article III standing law which directly held that it was not enough to allege a statutory violation and instead there must be a concrete injury to sustain an action in federal court. Muranksy v. Godiva Chocolatier, Inc., 979 F. 3d 917 (11th Cir. 2020). We noted the sharp divide in the Court and that it was an en banc decision. Now, the Eleventh…

Southeast Financial Litigation Monitor

Eleventh Circuit Reverses Course on Ascertainability Standard in Class Actions; Turns Tide in Plaintiffs’ Favor

By Gregory C. Cook & Tyler P. Bishop

February 5, 2021

This Tuesday, the United States Court of Appeals for the Eleventh Circuit reversed course on an emerging trend of case law concerning the ascertainability standard for class actions under Fed. R. Civ. P. 23, holding proof of administrative feasibility in identifying absent class members was not required at the class certification stage. This debate has consumed class action law for at least the last 7 years and caused Circuit splits. Under the administrative feasibility standard originally…

Southeast Financial Litigation Monitor

Cut them off at the Past – New COVID Stimulus Package Should Foreclose Any Possibility of Plaintiff Victory in Agent Fee Class Actions

By Gregory C. Cook, Conrad Anderson & Tyler P. Bishop

December 22, 2020

Last night, Congress passed a new COVID-19 stimulus package containing an important amendment to the CARES Act which should foreclose any possibility the Plaintiffs in the Agent Fee class actions currently pending across the country can successfully argue banks must pay them “agent fees” for preparing PPP loan applications. The amendment establishes that, contrary to the Plaintiffs’ assertions, banks are not required to pay agent fees absent a written agreement with the agent to do…

Southeast Financial Litigation Monitor

Banks Headed for Total Victory in Agent Fees Class Actions

By Gregory C. Cook, Conrad Anderson & Tyler P. Bishop

December 14, 2020

Twice this year, Balch & Bingham reported on the wave of “Agent Fee” class actions against lenders who made PPP loans under the CARES Act. At one point, there were over sixty such lawsuits spread across the federal courts, alleging that banks were required to pay CPAs and others who assisted borrowers with loan applications. Since then, eight different federal judges have now ruled in favor of the banks and dismissed Agent Fee class actions.…

Southeast Financial Litigation Monitor

Alabama Court of Civil Appeals Doubles Down on “Strict Compliance” with Notice Provisions of Standard Mortgage’s Paragraph 22

By Michael Taunton & Gabe Quistorff

November 18, 2020

This past June, in Barnes v. U.S. National Bank, No. 2180699, the Alabama Court of Civil Appeals held that a mortgagee’s notice of acceleration failed to strictly comply with the notice provisions contained in Paragraph 22 (“Paragraph 22”) of the Fannie Mae/Freddie Mac Uniform Mortgage. As a result, the Court held that the foreclosure sale was void.…

Southeast Financial Litigation Monitor

Tennessee Court of Appeals Becomes First Appellate Court to Affirm Dismissal of Class Action Challenging Multiple “Overdraft” or NSF Fees for Same Transaction or “Item.”

By Gregory C. Cook, Adam Israel & Tyler P. Bishop

November 11, 2020

Earlier this year, Balch & Bingham reported on the dismissal of one of the first class actions challenging financial institutions for charging multiple “overdraft” or not sufficient funds (“NSF”) fees for the same transaction or “item.” In these cases, Plaintiffs allege financial institutions may only charge an overdraft fee once for each “item” – be it a debit, check, draft, withdrawal, ACH payment request, etc. – no matter how many times merchants represent the transaction…

Southeast Financial Litigation Monitor

Giving Teeth to Article III Standing Requirements in the Eleventh Circuit.

By Meghan E. Pieler, Jason Tompkins & Gregory C. Cook

November 5, 2020

The federal courts have been struggling for several years to clarify Article III standing law. Is it enough that a plaintiff satisfy the elements of a federal consumer protection statute? Is it enough that a data breach have happened? Or, must the plaintiff show that they have actually been damaged or that there is a substantial risk that they will be damaged? On October 28, 2020 the Eleventh Circuit handed down a sharply split en…

Southeast Financial Litigation Monitor

RETREAT! “Agent Fee” Class Actions Moving Against Plaintiffs

By Tyler P. Bishop, Conrad Anderson & Gregory C. Cook

October 26, 2020

Earlier this year, Balch & Bingham reported on the wave of “Agent Fee” class actions against lenders who made PPP loans under the CARES Act. At one point, there were over sixty such lawsuits, spread across the federal courts, alleging that banks were required to pay CPAs and others who assisted borrowers with loan applications. Since then, however, virtually every ruling has been in favor of the banks, and now there is real reason to…

Southeast Financial Litigation Monitor

Florida Judge Dismisses First-Filed PPP Agent Fee Class Action, Holds the CARES Act Contains No Requirement Agents be Paid

By Gregory C. Cook, Conrad Anderson & Tyler P. Bishop

August 20, 2020

In a landmark decision Monday, the United States District Court for the Northern District of Florida dismissed a putative class action involving “agent fees” for Paycheck Protection Program (“PPP”) loans under the federal Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. This lawsuit, Sport & Wheat CPA, PA v. Servisfirst Bank et al., No. 3:20-cv-05425-TKW-HTC (N.D. Fla.) claimed to represent a class of accounting firms and other consultants that allegedly worked as agents on behalf…

Southeast Financial Litigation Monitor

Lenders Gain Big Win Resisting MDL Consolidation in PPP Agent Fees Class Action Litigation

By Tyler P. Bishop, Conrad Anderson & Gregory C. Cook

August 7, 2020

On Wednesday, the Judicial Panel on Multidistrict Litigation rejected consolidation of 62 class actions involving Paycheck Protection Program (“PPP”) loans under the federal Coronavirus Aid, Relief, and Economic Security (“CARES”) Act in a multidistrict litigation (“MDL”). These actions claim to represent a class of accounting firms (and other consultants) that allegedly worked as agents on behalf of applicants for PPP loans – typically small business clients. Plaintiffs contend the CARES Act and implementing regulations require…

Southeast Financial Litigation Monitor

Legal Developments Affecting the Financial Services Industry in Alabama, Florida, Georgia & Mississippi

Blog Authors

The Eleventh Circuit Continues to Build on Article III Standing Requirement

Eleventh Circuit Reverses Course on Ascertainability Standard in Class Actions; Turns Tide in Plaintiffs’ Favor

Cut them off at the Past – New COVID Stimulus Package Should Foreclose Any Possibility of Plaintiff Victory in Agent Fee Class Actions

Banks Headed for Total Victory in Agent Fees Class Actions

Alabama Court of Civil Appeals Doubles Down on “Strict Compliance” with Notice Provisions of Standard Mortgage’s Paragraph 22

Tennessee Court of Appeals Becomes First Appellate Court to Affirm Dismissal of Class Action Challenging Multiple “Overdraft” or NSF Fees for Same Transaction or “Item.”

Giving Teeth to Article III Standing Requirements in the Eleventh Circuit.

RETREAT! “Agent Fee” Class Actions Moving Against Plaintiffs

Florida Judge Dismisses First-Filed PPP Agent Fee Class Action, Holds the CARES Act Contains No Requirement Agents be Paid

Lenders Gain Big Win Resisting MDL Consolidation in PPP Agent Fees Class Action Litigation

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