Case: United States v. Citizens Republic Bancorp, Inc.

2:11-cv-11976 | U.S. District Court for the Eastern District of Michigan

Filed Date: May 5, 2011

Closed Date: June 28, 2011

Clearinghouse coding complete

Case Summary

The Department of Justice filed suit on May 5, 2011 in the U.S. District Court for the Eastern District of Michigan against Citizens Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that Citizens Bank had engaged in a discriminatory lending practice called redlining by unlawfully failing to provide its lending products and services on an equal basis to majority-minority census tracts in southeastern Michigan. These alle…

The Department of Justice filed suit on May 5, 2011 in the U.S. District Court for the Eastern District of Michigan against Citizens Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that Citizens Bank had engaged in a discriminatory lending practice called redlining by unlawfully failing to provide its lending products and services on an equal basis to majority-minority census tracts in southeastern Michigan. These allegations were based off of results from a routine bank examination completed by the Federal Reserve in 2007.

The two parties filed a proposed settlement agreement on May 5, 2011 after contentious negotiations. According to the draft agreed order, the Defendant-lender agreed to open branch offices during the term of the settlement agreement, market its expansion to majority-minority census tracts, hire staff to specialize in community lending, and contribute funding to the City of Detroit to go towards a grant program that revitalizes housing.

In a surprising turn of events, on May 10, 2011 the court (Judge Zatkoff) signed an order declining to accept the proposed settlement agreement that both parties had already agreed upon. The two parties retreated back to the negotiating table, reached their own settlement similar to the draft agreed order submitted to the court on their own, and the Department of Justice with requested that the pending court case be dismissed with prejudice by the court. On June 28, 2011 the court (Judge Zatkoff) agreed to dismiss the case with prejudice.

Similar cases brought forth by the Department of Justice against lenders due to allegations of redlining include United States v. Centier Bank, United States v. First American Bank, and United States v. Old Kent Financial Corporation.

Summary Authors

Megan Richardson (4/3/2014)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/5150609/parties/united-states-v-citizens-republic-bancorp-inc/


Judge(s)

Zatkoff, Lawrence Paul (Michigan)

Attorneys(s) for Plaintiff

Holder, Eric H. Jr. (District of Columbia)

Levy, Judith Ellen (Michigan)

McQuade, Barbara L. (Michigan)

Miller, Coty R. (District of Columbia)

Murphy, Donna M. (District of Columbia)

Perez, Thomas E. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Attorneys(s) for Defendant

Blase, Gregory M. (Massachusetts)

Brody, Melanie H. (Florida)

Judge(s)

Zatkoff, Lawrence Paul (Michigan)

Attorneys(s) for Plaintiff

Holder, Eric H. Jr. (District of Columbia)

Levy, Judith Ellen (Michigan)

McQuade, Barbara L. (Michigan)

Miller, Coty R. (District of Columbia)

Murphy, Donna M. (District of Columbia)

Perez, Thomas E. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Attorneys(s) for Defendant

Blase, Gregory M. (Massachusetts)

Brody, Melanie H. (Florida)

Hancock, Paul F. (Florida)

Malpass, Melissa Sanchez (Florida)

Documents in the Clearinghouse

Document

Docket

United States of America v. Citizens Republic Bancorp, Inc.

June 28, 2011 Docket
1

Complaint

United States of America v. Citizens Republic Bancorp, Inc.

May 5, 2011 Complaint
6

Motion of Entry of Proposed Agreed Order

United States of America v. Citizens Republic Bancorp, Inc.

May 17, 2011 Pleading / Motion / Brief
9

Order

United States of America v. Citizens Republic Bancorp, Inc.

2011 WL 2014873

May 24, 2011 Order/Opinion
12

Stipulated Notice of Dismissal

United States of America v. Citizens Republic Bancorp, Inc.

June 23, 2011 Settlement Agreement

Docket

See docket on RECAP: https://www.courtlistener.com/docket/5150609/united-states-v-citizens-republic-bancorp-inc/

Last updated May 12, 2022

ECF Number Description Date Link
2

ORDER DECLINING TO ENTER THE PROPOSED "AGREED ORDER". Signed by District Judge Lawrence P. Zatkoff. (MVer)

May 10, 2011 RECAP
1

COMPLAINT filed by United States of America against Citizens Bank, Citizens Republic Bancorp, Inc.. No summons requested. County Where Action Arose: Wayne − [Previously dismissed case: No] [Possible companion case(s): None] (Attachments: # 1 Exhibit A − CMSA Reference Map, # 2 Exhibit B − Pre Merger Branch Locations, # 3 Exhibit C − SEC Document, # 4 Exhibit D − Post Merger Branch Locations, # 5 Exhibit E − Citizens Bank Locations, # 6 Exhibit F − CRA Assessment Area Republic 2005−2006, # 7 Exhibit G − CRA Assessment Area Citizens 2006, # 8 Exhibit H − CRA Assessment Area Citizens 2007−2010, # 9 Exhibit I − Republic Bank App 2005, # 10 Exhibit J − Republic Bank App 2006, # 11 Exhibit K − Citizens Bank App 2007, # 12 Exhibit L − Citizens Bank App 2008) (Levy, Judith) (Entered: 05/05/2011)

May 5, 2011
9

ORDER Signed by District Judge Lawrence P. Zatkoff. (MVer)

May 24, 2011 RECAP
3

NOTICE of Appearance by Gregory N. Blase on behalf of Citizens Bank, Citizens Republic Bancorp, Inc.. (Blase, Gregory) (Entered: 05/11/2011)

May 11, 2011
4

STATEMENT of DISCLOSURE of CORPORATE AFFILIATIONS and FINANCIAL INTEREST by Citizens Republic Bancorp, Inc. (Blase, Gregory)

May 11, 2011
6

MOTION to Approve Consent Judgment by United States of America. (Attachments: # 1 Exhibit A−Proposed Agreed Order) (Levy, Judith) (Entered: 05/17/2011)

May 17, 2011
7

RESPONSE to 6 MOTION to Approve Consent Judgment filed by Citizens Bank, Citizens Republic Bancorp, Inc.. (Blase, Gregory) (Entered: 05/17/2011)

May 17, 2011
8

REPLY to Response re 6 MOTION to Approve Consent Judgment filed by United States of America. (Levy, Judith) (Entered: 05/24/2011)

May 24, 2011
10

ANSWER to Complaint with Affirmative Defenses by Citizens Republic Bancorp, Inc.. (Blase, Gregory) (Entered: 06/23/2011)

June 23, 2011
11

ANSWER to Complaint with Affirmative Defenses by Citizens Bank. (Blase, Gregory) (Entered: 06/23/2011)

June 23, 2011
12

NOTICE of Voluntary Dismissal by United States of America Stipulated Notice of Dismissal (Attachments: # 1 Exhibit Settlement Agreement) (Levy, Judith) (Entered: 06/23/2011)

June 23, 2011
13

ORDER of Dismissal. Signed by District Judge Lawrence P. Zatkoff. (CGre) (Entered: 06/28/2011)

June 28, 2011

State / Territory: Michigan

Case Type(s):

Fair Housing/Lending/Insurance

Key Dates

Filing Date: May 5, 2011

Closing Date: June 28, 2011

Case Ongoing: No

Plaintiffs

Plaintiff Description:

United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement

Plaintiff Type(s):

U.S. Dept of Justice plaintiff

Attorney Organizations:

U.S. Dept. of Justice Civil Rights Division

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

Citizens Republic Bancorp, Inc. , Private Entity/Person

Defendant Type(s):

Bank or credit provider

Case Details

Causes of Action:

Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.

Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691

Availably Documents:

Trial Court Docket

Monetary Relief

Injunctive (or Injunctive-like) Relief

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Damages

Source of Relief:

Settlement

Form of Settlement:

Private Settlement Agreement

Content of Injunction:

Develop anti-discrimination policy

Comply with advertising/recruiting requirements

Issues

General:

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

Race discrimination

Race:

Black