Case: United States v. Fort Davis State Bank

4:13-cv-00077 | U.S. District Court for the Western District of Texas

Filed Date: Dec. 19, 2013

Clearinghouse coding complete

Case Summary

On December 19, 2013, the U.S. Department of Justice (DOJ) filed this suit in the United States District Court for the Western District of Texas against Fort Davis State Bank (FDSB), alleging violations of the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691-1691f (ECOA). Specifically, the DOJ claimed that, from at least 2008 to 2010, FDSB engaged in a pattern or practice of discrimination on the basis of national origin by charging Hispanic borrowers higher interest rates on unsecured consumer…

On December 19, 2013, the U.S. Department of Justice (DOJ) filed this suit in the United States District Court for the Western District of Texas against Fort Davis State Bank (FDSB), alleging violations of the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691-1691f (ECOA). Specifically, the DOJ claimed that, from at least 2008 to 2010, FDSB engaged in a pattern or practice of discrimination on the basis of national origin by charging Hispanic borrowers higher interest rates on unsecured consumer loans compared to the rates it charged similarly situated non-Hispanic, white borrowers. DOJ asked the court for injunctive relief and an award of monetary damages to all persons harmed by these policies and practices.

That same day, the parties jointly filed a proposed consent order, which the District Court (Judge Robert A. Junell) approved and entered on January 2, 2014. Under the consent order, FDSB did not admit to any violation of ECOA, but agreed to:

  • Implement a monitoring program to ensure compliance with the consent order;
  • Display and provide to borrowers a notice of non-discrimination;
  • Provide ECOA training to its management officials, loan officers, and other relevant employees;
  • Deposit $159,000 into an escrow account for payment to the aggrieved borrowers;
  • Develop a complaint resolution process for customers alleging loan discrimination; and
  • Submit status reports to the DOJ.
On November 3, 2014, the District Court (Judge Robert A. Junell) entered an order administratively closing the case but retaining jurisdiction to enforce the terms of the consent order.

The consent order remained in effect until early 2017. Since there has been no substantive docket activity after 2014, the case is presumably closed.

Summary Authors

Robert Lake (6/8/2015)

Hope Brinn (11/2/2018)

People


Judge(s)

Junell, Robert A. (Texas)

Attorneys(s) for Plaintiff

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

O'Beirne, Patricia (District of Columbia)

Paniszczyn, John Francis (District of Columbia)

Pitman, Robert Lee (Texas)

Rosenbaum, Steven H. (District of Columbia)

Samuels, Jocelyn (District of Columbia)

Seward, Jon M. (District of Columbia)

Attorneys(s) for Defendant

Neeley, Karen M. (Texas)

Judge(s)

Junell, Robert A. (Texas)

Attorneys(s) for Plaintiff

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

O'Beirne, Patricia (District of Columbia)

Paniszczyn, John Francis (District of Columbia)

Pitman, Robert Lee (Texas)

Rosenbaum, Steven H. (District of Columbia)

Samuels, Jocelyn (District of Columbia)

Seward, Jon M. (District of Columbia)

Attorneys(s) for Defendant

Neeley, Karen M. (Texas)

Documents in the Clearinghouse

Document

4:13-cv-00077

Docket [PACER]

Oct. 4, 2016

Oct. 4, 2016

Docket
1

4:13-cv-00077

Complaint

Dec. 19, 2013

Dec. 19, 2013

Complaint
4

4:13-cv-00077

Consent Order

Jan. 2, 2014

Jan. 2, 2014

Order/Opinion

Resources

Docket

Last updated Aug. 4, 2022, 3:13 a.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT, filed by United States Of America. (Attachments: # 1 Consent, # 2 Civil Cover Sheet)(jw) (Entered: 12/19/2013)

Dec. 19, 2013

Dec. 19, 2013

2

MOTION for entry of consent order by United States Of America. (jw) (Entered: 12/19/2013)

Dec. 19, 2013

Dec. 19, 2013

3

MOTION to Appear Pro Hac Vice by Patricia L. O'Beirne United States Of America. (jw) (Entered: 12/19/2013)

Dec. 19, 2013

Dec. 19, 2013

4

CONSENT ORDER. Signed by Judge Robert A. Junell. (rl) (Entered: 01/02/2014)

Jan. 2, 2014

Jan. 2, 2014

5

ORDER GRANTING 3 Motion to Appear Pro Hac Vice. Pursuant to our Administrative Policies and Procedures for Electronic Filing, the attorney hereby granted to practice pro hac vice in this case must register for electronic filing with our court within 10 days of this order. Signed by Judge Robert A. Junell. (jw) (Entered: 03/27/2014)

March 27, 2014

March 27, 2014

6

ORDER DISMISSING CASE. Signed by Judge Robert A. Junell. (jw) (Entered: 11/07/2014)

Nov. 5, 2014

Nov. 5, 2014

7

Joint MOTION for Disbursement of Funds by United States Of America. (Attachments: # 1 Proposed Order)(O'Beirne, Patricia) (Entered: 10/03/2016)

Oct. 3, 2016

Oct. 3, 2016

8

ORDER GRANTING 7 Motion for Disbursement of Funds Signed by Judge Robert A. Junell. (mb1) (Entered: 10/04/2016)

Oct. 4, 2016

Oct. 4, 2016

Case Details

State / Territory: Texas

Case Type(s):

Fair Housing/Lending/Insurance

Special Collection(s):

Multi-LexSum (in sample)

Key Dates

Filing Date: Dec. 19, 2013

Case Ongoing: No

Plaintiffs

Plaintiff Description:

Plaintiff is the United States Attorney's Office in the Western District of Texas and the Department of Justice's Civil Rights Division Housing and Civil Enforcement Section.

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

Fort Davis State Bank, Private Entity/Person

Defendant Type(s):

Bank or credit provider

Case Details

Causes of Action:

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

Availably Documents:

Trial Court Docket

Complaint (any)

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:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: 159,000

Order Duration: 2014 - 2017

Content of Injunction:

Required disclosure

Reporting

Provide antidiscrimination training

Monitoring

Implement complaint/dispute resolution process

Discrimination Prohibition

Develop anti-discrimination policy

Issues

General:

Disparate Impact

Disparate Treatment

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

National origin discrimination

National Origin/Ethnicity:

Hispanic