Third Circuit Decision

Third Circuit Decision —  The Third Circuit Court of Appeals Revives Borrower Class Action in the U.S. District Court for the Western District of Pennsylvania

Click here to read the Third Circuit Decision:  Salvati v. Deutsche-Bank Decision

July 29, 2014.  In Salvati v. Deutsche Bank National Trust Company, N.A., et al., the Court of Appeals for the Third Circuit reversed U.S. District Court Judge Schwab’s March 28, 2013 Order dismissing all claims.

The Third Circuit decision reinstated a class action alleging that Deutsche Bank and Bank of America Home Loans Servicing had violated state (PA Loan Interest and Protection Law) and federal consumer protection laws (FDCPA:  Fair Debt Consumer Protection Act) in connection with handling of residential mortgage foreclosure proceedings.

The Third Circuit held that Judge Schwab had correctly dismissed certain claims because the plaintiff had never alleged that he had paid any fee.  The Third Circuit decision remanded (sent the case back for reconsideration) the case to the U.S. District Court for the Western District of Pennsylvania to consider the plaintiff’s FDCPA claim and PA Loan Interest and Protection Law claim.  These consumer protection laws provide that the plaintiff is entitled to statutory damages and attorneys’ fees regardless of whether he or she had paid the unlawful fee.