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”)
Southeast Financial Litigation Monitor
Legal Developments Affecting the Financial Services Industry in Alabama, Florida, Georgia & Mississippi
The Southeast Financial Litigation Monitor, published by Balch & Bingham LLP, focuses on legal developments and litigation trends in the financial sector within the southeastern United States. The blog covers topics such as class action settlements, data breach litigation, banking and loan collection disputes, statutory limitations, and procedural issues in financial litigation. It provides analysis of court decisions affecting financial institutions, including standing requirements, class certification standards, and regulatory impacts. The blog also addresses emerging challenges for lenders and borrowers, offering insights into evolving case law and its implications for financial services and litigation strategy.
Latest from Southeast Financial Litigation Monitor - Page 2
Lenders Gain Big Win Resisting MDL Consolidation in PPP Agent Fees Class Action Litigation
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…
You’re on Notice: Alabama Court of Civil Appeals Bears Down on Foreclosure “Strict Compliance” in Barnes v. U.S. National Bank, No. 2180699.
Recently the Alabama Court of Civil Appeals held that a mortgagee’s notice of acceleration failed to strictly comply with the mortgage’s notice provisions when it informed the borrower only that she “may” have right to assert defenses against foreclosure, rather…
A personal guarantor who does not have an interest in the property secured by the debt lacks standing to assert wrongful foreclosure.
In In Re: Bay Circle Properties, LLC., No. 1812536, 2020 WL 1696303 (Ala. April 8, 2020), the Eleventh Circuit dismissed an appeal by a guarantor alleging a wrongful foreclosure, because the guarantor did not own the foreclosed property and…
Second Wave of CARES Act Litigation Filed Against Banks; Accounting Firms Seek “Agent Fees” for Preparing PPP Loan Applications.
At least two class actions filed in the wake of the COVID-19 pandemic by disgruntled accounting firms allege some of the nation’s largest banks never paid “agent fees” to entities assisting small businesses apply for Paycheck Protection Program (“PPP”) loans…
A Properly Notarized Power of Attorney Provides Authority to Execute Mortgages
In Forbes v. Platinum Mortgage, Inc., No. 1180985, 2020 WL 746533 (Ala. Feb. 14, 2020), the Alabama Supreme Court upheld the validity of a home mortgage. There, the husband borrowed $175,000, securing the loan with a mortgage on the…
Eleventh Circuit Affirms FCRA Punitive Damage Award But Reduces Ratio to 4:1
In Williams v. First Advantage LNS Screening Solutions, Inc., 947 F.3d 735 (11th Cir. Jan. 9, 2020), the plaintiff recovered a jury verdict under the FCRA for $250,000 of compensatory damages and $3.3 Million of punitive damages. The defendant…
Banks Beware: New Class Actions Alleging Banks Prioritized Large PPP Loans Over Smaller Ones
In a flurry of new class actions filed on behalf of unhappy small business owners, banks are facing suits alleging they unlawfully prioritized processing large loans under the Paycheck Protection Program (PPP) over smaller ones. Two parallel class actions were…
“Cyber” Insurance Found to Cover Fraudulent Wire Transfer
The story is becoming all too common. A merchant (or consumer) is convinced to wire money to a fraudulent account because of an incorrect belief that they are wiring the money to the real party. A common example is a…
Class Action Alleging Multiple NSF fees for the Same ACH “Item”
As we have noted in other postings, plaintiffs continue to bring actions regarding bank fees charged for Overdraft or Not Sufficient Funds (“NSF”) fees. While these claims originally challenged posting order, they are now more creative. For instance, the “Authorize…