Supreme Court says cities can sue banks under anti-bias law
National News
The Supreme Court ruled Monday that cities may sue banks under the federal anti-discrimination in housing law, but said those lawsuits must tie claims about predatory lending practices among minority customers directly to declines in property taxes.
The justices' 5-3 ruling partly validated a novel approach by Miami and other cities to try to hold banks accountable under the federal Fair Housing Act for the wave of foreclosures during the housing crisis a decade ago.
But the court still threw out an appellate ruling in Miami's favor and ordered a lower court to re-examine the city's lawsuit against Wells Fargo and Bank of America to be sure that there is a direct connection between the lending practices and the city's losses.
Miami claimed that Wells Fargo and Bank of America, as well as Citigroup, pursued a decade-long pattern of targeting African-American and Hispanic borrowers for costlier and riskier loans than those offered to white customers. The loans to minority homeowners went into default more quickly as well, the city said.
Wells Fargo and Bank of America appealed the ruling by the 11th U.S. Circuit Court of Appeals to the Supreme Court, arguing that cities can't use the Fair Housing Act to sue over reductions in tax revenues. The banks said the connection between a loan and the tax consequences is too tenuous. Citigroup did not appeal, though its lawsuit also would be affected by what the appeals court does in response to Monday's ruling.
Related listings
-
Judge W. Brent Powell Appointed to Missouri Supreme Court
National News 05/01/2017Jackson County Circuit Judge W. Brent Powell was appointed Tuesday to the Missouri Supreme Court, marking the first high-profile judicial selection by new Republican Gov. Eric Greitens. Powell will replace former Judge Richard Teitelman, who died in ...
-
4th Arkansas inmate executed in 8 days lurches on gurney
National News 04/23/2017Arkansas executed its fourth inmate in eight days Thursday night, wrapping up an accelerated schedule with a lethal injection that left the prisoner lurching and convulsing 20 times before he died. Kenneth Williams, 38, was pronounced dead at 11:05 p...
-
High court sides with Goodyear in sanctions dispute
National News 04/22/2017A unanimous Supreme Court is siding with Goodyear Rubber & Tire Co. in a dispute over $2.7 million the company and its lawyers were ordered to pay in a personal injury case. The justices on Tuesday sent the case back to a lower court to decide wh...
Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.