United States Third Circuit

In a nationwide class action lawsuit alleging predatory home equity lending scheme involving two banks and a company that purchased second mortgage loans from them, district court's decisions certifying the "settlement only" nationwide class action and approving the class settlement is vacated where: 1) the district court applied an incorrect legal standard, and thus abused its discretion, in determining that the named plaintiffs and class counsel are adequate representatives for the class; and 2) in addressing the adequacy requirements on remand, the district court should in particular consider whether a subclass of class members with timely Real Estate Settlement Procedures Act (RESPA) and/or The Truth in Lending Act (TILA)/Home Ownership and Equity Protection Act (HOEPA) claims should be created, and whether class counsel are adequate representatives for the class, and/or any subclasses that may be created, in light of counsel's justifications given for their decision not to bring TILA/HOEPA claims on behalf of the class.

Appellate Information

• Argued 04/20/2010
• Decided 09/22/2010
• Published 09/22/2010

Judges

• AMBRO

Court

• United States Third Circuit

Counsel

• For Appellant:
  
• Garrett M. Hodes, Eric G. Calhoun