Berger & Montague, P.C. Announces Class Action Lawsuit On Behalf Of Thousands
Of Homeowners Against Citibank And MidFirst Bank Alleging Abuses In Their
Force-Placed Flood Insurance Programs Allowed To Proceed In U.S. District
PHILADELPHIA, Jan. 3, 2013
PHILADELPHIA, Jan. 3, 2013 /PRNewswire-USNewswire/ --On Wednesday, January 2,
2013, Judge David N. Hurd of the United States District Court for the Northern
District of New York issued a ruling permitting all of the plaintiffs' claims
to proceed in a nationwide class action alleging that Citibank (NYSE: C) and
MidFirst Bank improperly force-place high-premium flood insurance policies on
homeowners across the United States.
In their Complaint, plaintiffs Gordon Casey and Duane Skinner allege that
Citibank and MidFirst Bank have a policy and practice of force-placing
unnecessary flood insurance coverage above the amounts required by their
borrowers' mortgage contracts and by federal law. Citibank, MidFirst Bank and
their affiliates asked the Court to dismiss the case, asserting that the
borrowers' mortgage contracts permit them to force-place high premium flood
insurance coverage in amounts the banks deem necessary. However, the Court
denied the defendants' motions to dismiss and decided that the plaintiffs'
claims alleging breach of contract, unjust enrichment, breach of fiduciary
duty, conversion, violation of the Truth in Lending Act, and violation of the
New York Deceptive Practices Act can proceed.
"With respect to borrowers who live in federally designated flood zones,
Citibank, MidFirst Bank, and other banks engaged in the loan servicing
industry have engaged in a classic bait-and-switch, in which borrowers are
informed of one set of flood insurance requirements at closing and then,
later, the banks demand additional, unwarranted flood insurance coverage,"
said Shanon Carson of Berger & Montague, P.C., one of the lead attorneys for
the plaintiffs. "Through this scheme, Citibank and MidFirst Bank have harmed
thousands of borrowers by force-placing unnecessary flood insurance at
extraordinarily high prices, which often results in unwarranted fees and other
charges. In addition, each time the banks require such insurance, they
receive lucrative financial benefits from the insurance companies who place
the flood insurance policies."
"All U.S. borrowers with mortgages serviced by Citibank and MidFirst Bank who
have been forced to purchase flood insurance policies may be affected by the
Court's decision," added Kai Richter, another of the plaintiffs' attorneys.
"Now they will have their day in court."
Borrowers who have been subjected to force-placed insurance policies including
customers of Citibank and MidFirst Bank who are potentially affected by this
decision can obtain additional information by calling Shanon J. Carson, Esq.
at (215) 875-4656, of the law firm, Berger & Montague, P.C. Mr. Carson can
also be contacted by email at email@example.com. The plaintiffs in this case,
Casey, et al. v. Citibank, N.A., et al., No. 5:12-CV-820 (N.D.N.Y.), are
represented by the law firms of Berger & Montague, P.C., Nichols Kaster, PLLP,
and Taus Cebulash & Landau LLP.
Berger & Montague, P.C., based in Philadelphia, PA, consists of over 60
attorneys who represent plaintiffs in complex and class action litigation.
The firm's Consumer Protection Group and Insurance and Financial Products &
Services Group have extensive experience in representing homeowners, borrowers
and consumers in class action lawsuits against banks and insurers, and the
firm has played lead roles in major cases for over 40 years resulting in
recoveries of over $22 billion for their clients and the classes they
represent. On the Web: www.bergermontague.com. A copy of the Court's
decision denying the motions to dismiss filed by Citibank and MidFirst Bank is
available at http://www.bergermontague.com/media/363057/citi-mtd-decision.pdf.
Nichols Kaster, PLLP has offices in Minneapolis, MN and San Francisco, CA.
The firm was named to National Law Journal's 2011 Litigation Boutiques Hot
List for its attorneys' courtroom abilities, and has also been ranked as a
Best Law Firm by U.S. News & World Report. Additional information may be
obtained by contacting attorneys Kai Richter and Michelle Drake at
612-256-3200. In addition, a copy of the Court's decision is also available
on the firm's website, www.nka.com.
Taus, Cebulash & Landau, LLP, based in New York City, specializes in complex
consumer and antitrust class action litigation. Brett Cebulash and Kevin
Landau, the two TCL partners involved in this matter have 35 years of combined
experience in complex litigation and can be reached at (212) 931-0704 or via
e-mail at firstname.lastname@example.org or email@example.com for more information.
Berger & Montague, P.C., Nichols Kaster, LLP, and Taus Cebulash & Landau, LLP
are currently pursuing class action lawsuits against numerous banks and
insurance companies in the mortgage industry who are alleged to have engaged
in practices similar to Citibank and MidFirst Bank regarding force-placed
hazard insurance and force-placed flood insurance, including Bank of America,
Wells Fargo, JPMorgan Chase, Citizens Bank, GMAC, and others.
Shanon J. Carson
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Telephone: (215) 875-4656
Nichols Kaster, PLLP
4600 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
Telephone: (612) 256-3278
SOURCE Berger & Montague, P.C.
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