Supreme Court says cities can sue banks under anti-bias law

Topics in Legal News 2017/05/03 08:37   Bookmark and Share
The Supreme Court ruled Monday that cities may sue banks under the federal anti-discrimination in housing law, but said those lawsuits must tie claims about predatory lending practices among minority customers directly to declines in property taxes.

The justices' 5-3 ruling partly validated a novel approach by Miami and other cities to try to hold banks accountable under the federal Fair Housing Act for the wave of foreclosures during the housing crisis a decade ago.

But the court still threw out an appellate ruling in Miami's favor and ordered a lower court to re-examine the city's lawsuit against Wells Fargo and Bank of America to be sure that there is a direct connection between the lending practices and the city's losses.

Miami claimed that Wells Fargo and Bank of America, as well as Citigroup, pursued a decade-long pattern of targeting African-American and Hispanic borrowers for costlier and riskier loans than those offered to white customers. The loans to minority homeowners went into default more quickly as well, the city said.

Wells Fargo and Bank of America appealed the ruling by the 11th U.S. Circuit Court of Appeals to the Supreme Court, arguing that cities can't use the Fair Housing Act to sue over reductions in tax revenues. The banks said the connection between a loan and the tax consequences is too tenuous. Citigroup did not appeal, though its lawsuit also would be affected by what the appeals court does in response to Monday's ruling.

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Trump 'absolutely' considered breaking up 9th Circuit Court

Court News 2017/05/03 08:37   Bookmark and Share
President Donald Trump, still chafing over rulings blocking his travel ban early this year, says he's considered breaking up the West Coast-based 9th Circuit Court of Appeals.

Asked during a White House interview by the Washington Examiner if he'd thought about proposals to break up the court, Trump replied, "Absolutely, I have." He added that "there are many people that want to break up the 9th Circuit. It's outrageous."

The comments echoed his Twitter criticism of the court Wednesday morning.

Trump called U.S. District Judge William Orrick's preliminary injunction against his order stripping money from sanctuary cities "ridiculous" on Twitter. He said that he planned to take that case to the Supreme Court. But an administration appeal of the district court's decision would go first to the 9th Circuit.

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