Case Summaries

Bankruptcy Law

[03/12] In Re: Kirkland
District court's determination that the bankruptcy court had jurisdiction to determine the post-petition interest and collection costs to which the creditor was entitled as the result of a default on a student loan that occurred after the Chapter 13 estate was closed and the debtor discharged is reversed as the district court erred in concluding that the bankruptcy court had subject matter jurisdiction over the issues.

[03/10] In Re: Am. Bridge Prods., Inc.
In a bankruptcy trustee's action against an appointed receiver for misfeasance, judgment of the district court finding that plaintiff's claim is barred by the statute of limitations is vacated and remanded as the receiver had not rendered a final accounting or been discharged in either state or federal court.

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Banking Law

[03/10] Anchor Sav. Bank, FSB v. US
In one of the last Winstar cases arising out of the savings and loan crisis of the late 1970s and early 1980s, involving a plaintiff's suit alleging that the adoption of the FIRREA and its implementing regulations breached the government's obligations under supervisory merger contracts, judgment of the trial court in favor of the plaintiff is affirmed in part and remanded in part where: 1) the trial court did not commit clear err in finding that it was foreseeable that the breach would result in lost profits to plaintiff in an amount commensurate with the ultimate award for lost profits; 2) the trial court did not err in finding of a causal connection between the government's breach of contract and plaintiff's sale of RFC (a mortgage banking company); 3) the trial court did not err in awarding lost profit damages attributable to plaintiff's forced sale of RFC; 4) the trial court permissibly concluded that NAMCO (mortgage company) was a reasonable commercial substitute for RFC, and its purchase thus qualified as mitigation for the loss of RFC; but 5) the case is remanded to allow the trial court to determine whether an error was made in offsetting plaintiff's mitigation costs by NAMCO's retained earnings through 1997 and, if so, how to correct the error.

[03/09] Martinez v. Wells Fargo Home Mortgage, Inc.
In an action under Section 8(b) of the Real Estate Settlement Procedures Act (RESPA), and California's Unfair Competition Law (UCL), claiming that a mortgage lender charged plaintiffs an illegal underwriting fee, dismissal of the complaint is affirmed where: 1) the clear and unambiguous language of RESPA Section 8(b) did not reach the practice of "overcharging"; and 2) the UCL claims alleging "unfair" and "fraudulent" conduct were preempted by the National Bank Act, and the allegations of "illegal" conduct failed to state a claim.

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