Supreme Court says cities can sue banks under anti-bias law
Business Law
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.
Related listings
-
Court: FAA must reconsider regulating airline seat size
Business Law 08/23/2017An appeals court panel said Friday that federal officials must reconsider their decision not to regulate the size of airline seats as a safety issue.One of the judges called it “the Case of the Incredible Shrinking Airline Seat.”The Flyer...
-
British cybersecurity expert pleads not guilty to US charges
Business Law 08/23/2017A British cybersecurity researcher credited with helping curb a recent worldwide ransomware attack pleaded not guilty Monday to federal charges accusing him of creating malicious software to steal banking information three years ago.Marcus Hutchins e...
-
Nevada pot regulators back in court as supplies dwindle
Business Law 08/23/2017Nevada's marijuana regulators are headed back to court in a turf battle with liquor wholesalers over exclusive rights to distribute pot products to the state's new recreational retailers.Nevada's Taxation Department says the protracted legal fight ha...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.