civil procedure outline.docx

In re ameriquest mortgage co mortgage lending

Info icon This preview shows pages 28–30. Sign up to view the full content.

In re Ameriquest Mortgage Co. Mortgage Lending Practices Litigation (2007) o Barbara Skanes consummated a mortgage transaction w/ Ameriquest o Before the close of the transaction, Ameriquest ordered a property appraisal of Skanes future home by Homestead Appraisal; Agent Douglas Trevino appraised at $163,000 o Skanes says the “true value” of her home much less than that and reasoned that he did this so she had to increase the loan amount for which she would qualify and thereby increase Ameriquest’s potential profit o Skanes filed a claim under the federal Truth in Lending Act (TILA); she also said Ameriquest gave her improper and misleading disclosures of her right to cancel her mortgage o Claims II and III were state fraud claims against defendants Trevino moved to dismiss II and III thru 12(b)(1) and 1367(a) and (b) Court denied b/c sufficient nexus b/t Skanes state law claim and her TILA claims to support supplemental jurisdiction The discretionary factors in 1367(b) do not weigh in favor to decline sup juris o Courts analysis: First look at 1367(a): (case/controversy) “common nucleus of operative fact” Court says if trying to figure out some case/controversy; do these derive from a common nucleus of operative fact 1367(b) 28
Image of page 28

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Not at issue here Second look at 1367(c): (exceptions) Defendant arguing that (c)(1) applied Court says not novel and not complex; yes this statute manifestation might be new but this area of fraud not new at all o Courts not saying if she will win/lose; just that they should hear the case o Class notes: Saves Skanes from having to spend money on two trials What would happen if she only has Ameriquest in one suit and Trevino in the other? Both can blame the other; makes it harder to get the complete picture From Skanes perspective she needs to make the case the two were working together State and federal claims can be heard together under supplemental jurisdiction Szendrey-Ramos v. First Bancorp (2007) o Szendrey-Ramos was general counsel for Frist Bancorp in Puerto Rico o She received a report from an external law firm that reported possible ethical and/or legal violations committed by bank officials o She conducted an investigation and concluded there were irregularities and violations of the Banks Code of Ethics o She reported the findings to outside counsel, bank officials and the Board o She was then fired and the bank blamed her for some of the events that took place o She sued under federal employment law (Title VII) and other claims under Puerto Rico law o Court declined to exercise supplemental jurisdiction over Puerto Rico law claims; case only went forward on Title VII claims Falls under 1367(a) – federal question (Title VII) o Court looks at 1367(c): Look at Canon 21 of PR Code; lawyers bound by professional ethics Can’t tell b/c Canon 21 doesn’t allow her to disclose client confidences; can’t reveal communications w/ her client employer Court is worried about public policy issue; Canon 21 does not conform to the American Bar Association so Puerto Rico court is better to hear this Court says if this was just an average provision, then would be no problem, but this is
Image of page 29
Image of page 30
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '14
  • AnnC.Juliano
  • Law

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern