Los Angeles Targets Trustee to Clean-Up Housing Mess

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The People of the State of California and The City of Los Angeles (collectively, the "Plaintiff") are seeking to hold Deutsche Bank National Trust Company and Deutsche Bank Trust Company Americas, as trustee under hundreds of mortgaged-backed securitizations (collectively, the "Trustee"), liable for reparations on thousand of homes in the LA County area. In the complaint filed May 4, 2011 in Los Angeles Superior Court, the Plaintiff alleges that the Trustee disregarded its legal duties and responsibilities as property owner, resulting in the creation and maintenance of vacant nuisance properties and substandard occupied housing units.

Among the various remedies sought is an order requiring the Trustee to bring the more than 2000 residential foreclosed properties into compliance with applicable habitability, tenancy and nuisance laws. You can see a sampling of the conditions requiring repair at 200 of the foreclosed properties in the complaint. The Plaintiff also seeks to enjoin the Defendants from further violating the California Unfair Competition Law ("UCL") and the Los Angeles Municipal Code ("LAMC") section 11.00, subdivision (l), as well as civil penalties of $2500 per day per violation of each of sections 17206 and 17206.1 of the UCL and the LAMC over a four-year period.

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Published In: Civil Remedies Updates, General Business Updates, Finance & Banking Updates, Residential Real Estate Updates, Wills, Trusts, & Estate Planning Updates

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.

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