Case: United States v. First United Security Bank

1:09-cv-00644 | U.S. District Court for the Southern District of Alabama

Filed Date: Sept. 30, 2009

Closed Date: 2016

Clearinghouse coding complete

Case Summary

On September 30, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The Department of Justice claimed that the Bank engaged in a pattern or practice of home-mortgage lending discrimination against black applicants It asked the court to: 1) declare that the Bank's practices violated the Fair Housing Act and the Equal Credit Opportu…

On September 30, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The Department of Justice claimed that the Bank engaged in a pattern or practice of home-mortgage lending discrimination against black applicants It asked the court to: 1) declare that the Bank's practices violated the Fair Housing Act and the Equal Credit Opportunity Act; 2) enjoin the Bank from continuing the discriminatory practice; 3) award monetary damages to all victims of the Bank's allegedly discriminatory practices; and 4) asses a civil penalty against the Bank. Specifically, the Department of Justice claimed that the Federal Deposit Insurance Corporation (FDIC) had reason to believe that in 2004 the Bank discriminated against black applicants on the basis of race by setting higher interest rates for first-lien refinance loans and by failing to meet the lending needs of majority African-American tracts in west central Alabama on an equal basis with majority white tracts.

The case was assigned to Chief Judge William H. Steele. On November 18, 2009, he entered an agreed order for resolution. This agreement stated that the Bank had implemented and would continue to implement policies and procedures that would ensure the pricing of its residential loans were not discriminatory. The bank would also compensate some African-American borrowers under a standard pricing matrix and opening branches in majority African-American areas that it serves. The bank also agreed to asses the credit needs of consumers in majority black areas and engage in consumer education.

This agreement required annual reports by the bank, and was scheduled to terminate in 2014. However, on May 6, 2014 the parties filed a joint motion asking the court to extend the agreement because the bank had been unable to satisfy a provision that required a $500,000 investment in a special fund for lending to minority communities. The submission did not explain why the bank had been unable to make this investment. The agreement was extended for an additional four years or until the bank satisfied the investment requirement, and was approved by Judge Steele on May 7, 2014.

On April 27, 2016, the parties filed a joint status report stating that all provisions of the agreement had been met. Judge Steele dismissed the case the same day.

Summary Authors

Megan Dolan (5/28/2014)

Nathaniel Flack (1/20/2019)

People


Judge(s)

Milling, Bert W. Jr. (Alabama)

Steele, William H. (Alabama)

Attorneys(s) for Plaintiff

Campos, Marta (District of Columbia)

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

King, Loretta (District of Columbia)

Moore, Gary Alan (Alabama)

Murphy, Donna M. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Seidel, Eugene A. (Alabama)

Smith, David Michael (Alabama)

Judge(s)

Milling, Bert W. Jr. (Alabama)

Steele, William H. (Alabama)

Attorneys(s) for Plaintiff

Campos, Marta (District of Columbia)

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

King, Loretta (District of Columbia)

Moore, Gary Alan (Alabama)

Murphy, Donna M. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Seidel, Eugene A. (Alabama)

Smith, David Michael (Alabama)

Wiseman, Holly Lee (District of Columbia)

Attorneys(s) for Defendant

Brown, Stephen E (Alabama)

Dulin, John P. Jr. (Alabama)

Glancz, Ronald R. (District of Columbia)

Documents in the Clearinghouse

Document

Docket [PACER]

United States of America v. First United Security Bank

April 27, 2016 Docket
1

Complaint

United States of America v. First United Security Bank

Sept. 30, 2009 Complaint
5

Agreed Order for Resolution

United States of America v. First United Security Bank

Nov. 18, 2009 Order/Opinion

Justice Department Reaches Settlement with First United Security Bank of Thomasville, Alabama, Regarding Alleged Discrimination in Lending

United States of America v. First United Security Bank

No Court

Nov. 30, 2009 Press Release
10

Joint Status Report

United States of America v. First United Security Bank

March 28, 2014 Findings Letter/Report
12

Joint Motion to Amend Order of District Judge 5 Order, by United States of America. (Attachments: # 1 Text of Proposed Order proposed amended order, # 2 memo in support of motion)

May 6, 2014 Pleading / Motion / Brief
14

Amended Agreed Order for Resolution

May 7, 2014 Order/Opinion
17

Joint Status Report

United States of America v. First United Security Bank

April 9, 2015 Findings Letter/Report
19

Joint Status Report

United States of America v. First United Security Bank

Dec. 7, 2015 Findings Letter/Report
21

Joint Status Report

United States of America v. First United Security Bank

April 27, 2016 Findings Letter/Report

Docket

Last updated May 12, 2022, 8 p.m.

ECF Number Description Date Link
1

COMPLAINT against First United Security Bank, filed by United States of America. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4) (Moore, Gary) (Additional attachment(s) added on 10/2/2009: # 5 Civil Cover Sheet) (mpp, ). (Entered: 09/30/2009)

Sept. 30, 2009
2

Proposed Consent Decree by United States of America and First United Security Bank. (Moore, Gary) (Entered: 09/30/2009)

Sept. 30, 2009
3

Order entered, A Notice of Assignment to United States Magistrate Judge for Trial is attached to this Order. If they so desire, the parties are requested to confirm their consent in writing to have the undersigned Magistrate Judge conduct any and all proceedings in this action not later than October 8, 2009. However, only one consent form, signed by counsel for all parties, is to be filed. If written consent is not filed by October 8, 2009, the Clerk is directed to reassign this action to a United States District Judge. Signed by Magistrate Judge Bert W. Milling, Jr on 10/1/09. (Attachments: # 1 Consent Form) (clr) (Entered: 10/01/2009)

Oct. 1, 2009
4

This action has been transferred from the docket of Magistrate Judge Bert W. Milling, Jr., and is now assigned to the docket of Judge William H. Steele. To ensure that your pleadings are referred to the proper Judge and Magistrate Judge with as little delay as possible, please use the letter suffix WS−M after the case number on all future pleadings. (clr) (Entered: 10/09/2009)

Oct. 9, 2009

Set/Reset Hearings: Telephone Conference set for 11/18/2009 at 10:00 AM in US Courthouse, Judge's Chambers, 113 St. Joseph Street, Mobile, AL 36602 before Judge William H. Steele. (mbp) (Entered: 11/17/2009)

Nov. 17, 2009
5

Agreed Order For Resolution entered. The Court shall retain jurisdiction for the duration of this Agreement to enforce the terms of the Agreement, after which time the case shall be dismissed with prejudice.. Signed by Judge William H. Steele on 11/18/09. (tgw) (Entered: 11/18/2009)

Nov. 18, 2009
6

Order that because the case is fully resolved by settlement, with only full execution of the settlement delayed, the action should be closed for statistical purposes. The parties are ordered to file and serve notice promptly should the agreement terminate according to its terms or should they seek termination. Should the agreement not be earlier terminated, the parties are ordered to file, by 4/1/2014, a joint status report concerning the projected termination date of the agreement. Signed by Chief Judge William H. Steele on 3/26/2013. (sdb) (Entered: 03/26/2013)

March 26, 2013
7

NOTICE by United States of America of Substitution of Counsel (Wiseman, Holly) (Entered: 11/27/2013)

Nov. 27, 2013
8

MOTION to Substitute Attorney by First United Security Bank. (Smith, David) (Entered: 02/13/2014)

Feb. 13, 2014
9

ENDORSED ORDER GRANTING 8 Motion to Substitute Attorney filed by David M. Smith. Attorney Stephen E. Brown terminated. Signed by Magistrate Judge Bert W. Milling, Jr on 2/13/2014. (clr) (Entered: 02/13/2014)

Feb. 13, 2014
11

Order noting the 10 Joint Status Report. The parties are ordered to file and serve notice promptly should the agreement terminate according to its terms or should they seek termination. Should the agreement not be earlier terminated, the parties are ordered to file, by 10/15/2014, a joint status report concerning the projected termination date of the agreement. Signed by Chief Judge William H. Steele on 4/8/2014. (tgw) (Entered: 04/08/2014)

April 8, 2014
12

Joint MOTION to Amend Order of District Judge 5 Order, by United States of America. (Attachments: # 1 Text of Proposed Order proposed amended order, # 2 memo in support of motion) (Campos, Marta) (Entered: 05/06/2014)

May 6, 2014
13

ENDORSED ORDER granting 12 Joint Motion to Amend Agreed Order. Signed by Chief Judge William H. Steele on 5/7/2014. (Steele, William) (Entered: 05/07/2014)

May 7, 2014
14

Amended Agreed Order for Resolution. Signed by Chief Judge William H. Steele on 5/7/2014. (jlr) (Entered: 05/09/2014)

May 7, 2014
15

STATUS REPORT Joint by United States of America. (Campos, Marta) (Entered: 09/26/2014)

Sept. 26, 2014

REFERRAL OF 15 Status Report to Judge Steele. (tgw) (Entered: 09/26/2014)

Sept. 26, 2014
16

Order noting the 15 Status Report. The parties are ordered to file and serve notice promptly should the agreement terminate according to its terms or should they seek termination. Should the agreement not be earlier terminated, the parties are ordered to file, by April 15, 2015, a joint status report concerning the projected termination date of the agreement. Signed by Chief Judge William H. Steele on 9/29/2014. (tgw) (Entered: 09/29/2014)

Sept. 29, 2014
17

STATUS REPORT Joint by United States of America. (Campos, Marta) (Entered: 04/09/2015)

April 9, 2015

REFERRAL OF 17 Status Report to Judge Steele. (sdb) (Entered: 04/09/2015)

April 9, 2015
18

Order re: 17 Status Report filed by United States of America is noted. Should the agreement not be earlier terminated, the parties are to file a Status Report by 12/15/15. Signed by Chief Judge William H. Steele on 4/13/2015. (mbp) (Entered: 04/13/2015)

April 13, 2015
19

STATUS REPORT Joint by United States of America. (Campos, Marta) (Entered: 12/07/2015)

Dec. 7, 2015

REFERRAL OF 19 Status Report to Judge Steele. (sdb) (Entered: 12/08/2015)

Dec. 8, 2015
20

Order noting the 19 Status Report. The parties are ordered to file and serve notice promptly should the agreement terminate according to its terms or should they seek termination. Should the agreement not be earlier terminated, the parties are ordered to file, on or before May 15, 2016, a joint status report concerning the projected termination date of the agreement Status Report due by 5/15/2016. Signed by Chief Judge William H. Steele on 12/16/2015. (tgw) (Entered: 12/16/2015)

Dec. 16, 2015
21

Joint Status Report by United States of America. (Campos, Marta) Modified on 4/27/2016 (mbp). (Entered: 04/27/2016)

April 27, 2016

REFERRAL OF 21 Joint Status Report to Judge Steele. (mbp) (Entered: 04/27/2016)

April 27, 2016
22

Order re: 21 Status Report. The embedded motion for early termination of the term of the Amended Agreed Order for Resolution is granted. Pursuant to paragraph 39(b) of the Amended Order, (Doc. 14 at 20), the Agreement is terminated. Pursuant to paragraph 43 of the Amended Order, (id. at 21), this action is dismissed with prejudice, and the Court's retention of jurisdiction is terminated. Signed by Chief Judge William H. Steele on 4/27/2016. (tgw) (Entered: 04/28/2016)

April 27, 2016

State / Territory: Alabama

Case Type(s):

Fair Housing/Lending/Insurance

Key Dates

Filing Date: Sept. 30, 2009

Closing Date: 2016

Case Ongoing: No

Plaintiffs

Plaintiff Description:

The United States Department of Justice, vindicating the rights of African-American loan applicants.

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

First United Security Bank (Clarke), 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

Complaint (any)

Injunctive (or Injunctive-like) Relief

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: 610,000

Order Duration: 2009 - 2016

Content of Injunction:

Comply with advertising/recruiting requirements

Develop anti-discrimination policy

Discrimination Prohibition

Hire

Provide antidiscrimination training

Recordkeeping

Reporting

Issues

General:

Disparate Treatment

Funding

Housing

Pattern or Practice

Predatory lending

Discrimination-area:

Housing Sales/Rental

Lending

Discrimination-basis:

Race discrimination

Race:

Black