California Federal Judge Allows Second Los Angeles Fair Housing Case To Proceed


On June 9, the U.S. District Court for the Central District of California denied a mortgage lender’s motion to dismiss the City of Los Angeles’s Fair Housing Act suit, the second such denial by the same judge in recent weeks. Los Angeles v. Citigroup, Inc., No. 13-9009, 2014 WL 2571558 (C.D. Cal. Jun. 9, 2014). The case is one of several the city has filed alleging that certain mortgage lenders engaged in predatory lending in minority communities, the allegedly predatory loans were more likely to result in foreclosure, and that foreclosures allegedly caused by those practices diminished the city’s property tax base and increased the costs of providing municipal services. The instant order adopts the court’s prior holdings on all of the overlapping arguments presented by the lenders in the two cases. In addition, the court rejected the additional argument that the city’s suit was time barred because the city was on notice of its claims as early as November 2011 when it invited a law firm to “present proposed FHA litigation against ‘several large banking institutions.’”

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.