Plaintiffs' suit against lenders under the Real Estate Settlement Procedures Act
Catalan v. GMAC Mortgage Corp., 09-2182, concerned plaintiffs' suit against defendant mortgage companies under the federal Real Estate Settlement Procedures Act (RESPA), and under Illinois law for gross negligence, breach of contract, and willful and wanton negligence.
Catalan v. GMAC Mortgage Corp., 09-2182, concerned plaintiffs' suit against defendant mortgage companies under the federal Real Estate Settlement Procedures Act (RESPA), and under Illinois law for gross negligence, breach of contract, and willful and wanton negligence.
In reversing the summary judgment for defendant on the plaintiffs' RESPA
claim, the court held that the district court erred in concluding that
defendant was entitled to the protection of the RESPA safe harbor
provision in 12 U.S.C. section 2605(f)(4) as defendant did not argue,
and nothing in the record shows, that defendant "notified the person
concerned of the error," as required to invoke the protection, and on
this basis alone, defendant was not eligible for protection in the RESPA
safe harbor. The court also reversed the summary judgment for
defendant on plaintiffs' breach of contract claim as a reasonable trier
of fact could find that plaintiffs' failure to remit their October 2004
payment in a timely manner was excused due to the lenders' earlier
breaches and errors and the resulting confusion surrounding their
account. However, the court affirmed the trial court's dismissal of
plaintiffs' negligence claims as plaintiffs have made no showing of a
fiduciary relationship between the parties. Lastly, although the
district court did not address the question of damages, plaintiffs have
raised disputed issues of material fact that bar summary judgment on
this basis.
Related Link:
Related Link:
- Read the Seventh Circuit's Full Decision in Catalan v. GMAC Mortgage Corp., 09-2182
