Real Property, Financial Services & Title Insurance Case Law Update: Week Ending February 7, 2014

I. FLORIDA STATE CASES – SCOTT FEATHER

  • Insurer’s Duty to Defend: order staying insurer’s declaratory action seeking coverage determination departed from essential requirements of law and caused insurer irreparable harm by forcing insurer to defend without resolution of coverage dispute - FCCI Commercial Ins. Co., Inc. v. Armour, 2D13-2649 (Feb. 5, 2014) (writ granted and order quashed)
  • Statute of Limitations: limitations period on insured homeowner’s supplemental claim ran from date submitted but not paid - Rizo v. State Farm Florida Ins. Co., 3D12-3088 (Feb. 5, 2014) (reversed)
  • Insurance Coverage: duty to defend requires insurer to file motion to set aside default judgment against insured if grounds exist – Indem. Ins. Corp. of DC. v. Caylao, 1D12-5733 (Feb. 4, 2014) (reversed and remanded for further proceedings)

II. 11TH CIRCUIT CASES – LAUREN SEMBLER

  • Promissory Estoppel/ Right of Action Under HAMP: letter from servicer stating borrowers might be eligible for trial modification under HAMP was not a binding promise they would receive HAMP loan modification and could not be used to create a right of action under HAMP– Bloch v. Wells Fargo Bank Home Mortgage, Case No. 13-10680 (11th Cir. Feb. 3, 2014) (affirming summary judgment in favor of Wells Fargo) [Congratulations to Alana Zorilla-Gaston and Dean Morande who represented Wells Fargo in this appeal!]
  • Florida’s Bank Statute of Frauds: alleged verbal conversations between borrowers and servicer regarding purported promise barred by Florida’s Banking Statute of Frauds, which provides borrowers may not maintain action on an agreement by creditor to take certain actions unless in writing, expresses consideration, sets forth relevant terms and conditions, and signed by creditor and borrower – Bloch v. Wells Fargo Bank Home Mortgage, Case No. 13-10680 (11th Cir. Feb. 3, 2014) (affirming summary judgment in favor of Wells Fargo) [Congratulations to Alana Zorilla-Gaston and Dean Morande who represented Wells Fargo in this appeal!]
  • FDCPA: although filing of civil complaint does not constitute initial communication with consumer requiring FDCPA notice, where debt collector gratuitously provided notice containing inaccurate information about consumer’s rights, consumer stated claim for violation of FDCPA – Freire v. Aldridge Connors, LLP, Case No. 13-62069 (S.D. Fla. Feb. 4, 2014) (order denying motion to dismiss)

III. TITLE INSURANCE CASES - NONE

Topics:  Banking Sector, Duty to Defend, FDCPA, Financial Companies, HAMP, Mortgage Servicers, Wells Fargo

Published In: Civil Procedure Updates, Finance & Banking Updates, Insurance Updates, Residential Real Estate 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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