Supreme Court gives homeowners another chance in escrow dispute
Lawyer Blogs
The Supreme Court on Thursday gave homeowners another chance to force Bank of America and other large banks to pay interest on mortgage escrow accounts.
The court unanimously threw out an appeals court ruling in favor of Bank of America, which has refused to pay interest on money it collects to pay borrowers’ insurance and property tax bills. New York requires banks to pay at 2% interest on escrowed funds.
Thirteen other states have similar laws: California, Connecticut, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, Oregon, Rhode Island, Utah, Vermont and Wisconsin.
A federal judge initially ruled in favor of the borrowers, but the federal appeals court in New York granted Bank of America’s request to dismiss the suits, arguing that the federal law governing national banks does not permit such state-by-state regulation.
Justice Brett Kavanaugh wrote for the Supreme Court that the appeals court did not perform the kind of nuanced analysis required by federal law and prior Supreme Court decisions to determine if a state law must give way to a federal statute.
In particular, Kavanaugh noted that the Dodd-Frank Act, enacted after the 2008 financial crisis, made clear that not all state banking laws are pre-empted.
Jonathan Taylor, who argued the case for the homeowners, said in an email that the decision is a victory for consumers because it “vindicates Congress’ determination in Dodd-Frank to rein in the kind of aggressive preemption of state consumer-financial laws that helped lead to the financial crisis.”
Bank of America did not immediately comment on the decision.
Related listings
-
Justice Clarence Thomas calls Washington a 'hideous place'
Lawyer Blogs 05/11/2024Supreme Court Justice Clarence Thomas told attendees at a judicial conference Friday that he and his wife have faced “nastiness” and “lies” over the last several years and decried Washington, D.C., as a “hideous place.&r...
-
Mexico breaks diplomatic ties with Ecuador after embassy raid
Lawyer Blogs 04/08/2024The Mexican president has quickly moved to break off diplomatic ties with Ecuador after police broke into the Mexican Embassy to arrest a former vice president who had sought political asylum there after being indicted on corruption charges.In an ext...
-
Witness at trial recounts fatal shooting of cinematographer by Alec Baldwin
Lawyer Blogs 02/25/2024Testimony at trial Monday turned emotional and argumentative as an eyewitness recounted the fatal 2021 shooting of a cinematographer by actor Alec Baldwin during a movie rehearsal and described gun misfires, crew members walking out and a “ludi...
Grounds for Divorce in Ohio - Sylkatis Law, LLC
A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party
Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party
However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.