Case: City of Los Angeles v. JPMorgan Chase

2:14-cv-04168 | U.S. District Court for the Central District of California

Filed Date: May 30, 2014

Closed Date: 2015

Clearinghouse coding complete

Case Summary

On May 30, 2014, the City of Los Angeles filed this lawsuit in the U.S. District Court for the Central District of California. The City sued JP Morgan Chase Bank under the Equal Credit Opportunity Act (ECOA) and Fair Housing Act/Fair Housing Amendments Act (FHAA). The City sought damages, declaratory and injunctive relief, alleging that the bank's lending practices were predatory, intentionally discriminated against minority borrowers, and had a disparate impact on minorities. Specifically, the…

Specifically, the complaint alleged disparate impact claims, based on statistical data, that: 1) lending practices resulted in disproportionate number of foreclosures in minority neighborhoods; 2) minority homeowners received disproportionate number of predatory loans. It also alleged the bank intentionally discriminated against minorities by: 1) targeting minorities for predatory loans; 2) underwriting adjustable loan rates that borrowers could not afford; and 3) inducing foreclosures by refusing to offer refinancing or loan restructuring on fair terms. The City claimed it was injured as a result of the bank's practices through loss of property tax and decrease in property value.

The City also brought two other actions regarding discriminatory and predatory lending against Wells Fargo (City of Los Angeles v. Wells Fargo & Company, No. 2:13-cv-09007-ODW) and Citigroup (City of Los Angeles v. Citigroup, Inc., No. 2:13-cv-09009-ODW), respectively.

On June 25, 2014, the bank filed a motion to dismiss for lack of standing and failure to state a claim. On August 5, 2014, Judge Otis D. Wright granted the motion to dismiss but gave the City 21 days to amend its complaint. 2014 WL 3854332 (N.D. Cal. 2014).

On August 26, 2014, the City filed an amended complaint that again alleged that the defendant had engaged in discriminatory and predatory lending practices, adding that minorities in fact received predatory loan terms from JP Morgan and that these loan terms led to rapid foreclosure. The complaint further alleged that the City had been injured by the bank's practices because it still had to provide costly municipal services for properties in minority neighborhoods that had became vacant as a direct result of discriminatory loans originated or purchased by the bank.

On November 14, 2014, Judge Wright denied JP Morgan's motion to dismiss, stating that the City's allegations were sufficient to withstand the pleading stage. Judge Wright found the City's allegations regarding causation to be sufficient to assert standing, and ruled that Chase's arguments for dismissing the case for failure to state a claim went to the weight of the evidence, not the sufficiency of the pleading.

In the related case against Wells Fargo, on July 17, 2015, the Court granted summary judgment against the City. 2015 WL 4398858 (C.D. Cal. July 17, 2015). As a result, on August 6, 2015, the City filed an ex parte application to stay this case pending appeal of the Wells Fargo action, in order to avoid duplicative litigation both in the trial court and on appeal.

However, on September 2, 2015, the court (Judge Otis D. Wright II) dismissed the case with prejudice, as stipulated between the parties. We do not know if the matter was settled, or if Los Angeles simply withdrew it. No settlement papers are available.

	Document
2:14-cv-04168	Docket [PACER] City of Los Angeles v. JPMorgan Chase & Co	Sept. 2, 2015	Sept. 2, 2015 Docket
1 2:14-cv-04168	Complaint for Violation of the Federal Fair Housing Act City of Los Angeles v. JPMorgan Chase & Co	May 30, 2014	May 30, 2014 Complaint
40 2:14-cv-04168	Order Granting Defendants' Motion to Dismiss with Leave to Amend City of Los Angeles v. JPMorgan Chase & Co	Aug. 5, 2014	Aug. 5, 2014 Order/Opinion 2014 WL 3854332
41 2:14-cv-04168	First Amended Complaint for Violation of the Federal Fair Housing Act City of Los Angeles v. JPMorgan Chase & Co	Aug. 26, 2014	Aug. 26, 2014 Complaint
49 2:14-cv-04168	Order Denying Defendants' Motion to Dismiss Plaintiff's First Amended Complaint City of Los Angeles v. JPMorgan Chase & Co	Nov. 14, 2014	Nov. 14, 2014 Order/Opinion 2014 WL 6453808
59 2:14-cv-04168	Protective Order on Stipulation Regarding Confidential Information City of Los Angeles v. JPMorgan Chase & Co	Feb. 18, 2015	Feb. 18, 2015 Order/Opinion
62 2:14-cv-04168	Order on Stipulation Regarding ESI Discovery Protocol City of Los Angeles v. JPMorgan Chase & Co	March 24, 2015	March 24, 2015 Order/Opinion
63 2:14-cv-04168	Order Amending Case Management Schedule City of Los Angeles v. JPMorgan Chase & Co	March 27, 2015	March 27, 2015 Order/Opinion
66 2:14-cv-04168	Ex Parte Application to Stay Case pending Appeal of Related Action City of Los Angeles v. JPMorgan Chase & Co	Aug. 6, 2015	Aug. 6, 2015 Pleading / Motion / Brief
70 2:14-cv-04168	Order Dismissing All Claims with Prejudice City of Los Angeles v. JPMorgan Chase & Co	Sept. 2, 2015	Sept. 2, 2015 Order/Opinion

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT Receipt No: 0973-13887328 - Fee: $400, filed by Plaintiff City of Los Angeles. (Attorney Elaine T Byszewski added to party City of Los Angeles(pty:pla))(Byszewski, Elaine) (Entered: 05/30/2014)	May 30, 2014	May 30, 2014 RECAP
2	CIVIL COVER SHEET filed by Plaintiff City of Los Angeles. (Byszewski, Elaine) (Entered: 05/30/2014)	May 30, 2014	May 30, 2014 PACER
3	Request for Clerk to Issue Summons on Complaint (Attorney Civil Case Opening) 1 filed by Plaintiff City of Los Angeles. (Byszewski, Elaine) (Entered: 05/30/2014)	May 30, 2014	May 30, 2014 PACER
4	NOTICE of Interested Parties filed by Plaintiff City of Los Angeles, identifying City of Los Angeles; JPMorgan Chase & Co.; JPMorgan Chase Bank, N.A.; and Chase Manhattan Bank USA, N.A.. (Byszewski, Elaine) (Entered: 05/30/2014)	May 30, 2014	May 30, 2014 PACER
5	NOTICE of Related Case(s) filed by Plaintiff City of Los Angeles. Related Case(s): 2:13-cv-09007-ODW(RZx); 2:13-cv-09009-ODW(RZx); and 2:13-cv-09046-PA(AGRx) (Byszewski, Elaine) (Entered: 05/30/2014)	May 30, 2014	May 30, 2014 PACER
6	NOTICE OF ASSIGNMENT to District Judge Dolly M. Gee and Magistrate Judge Michael R. Wilner. (esa) (Entered: 06/02/2014)	June 2, 2014	June 2, 2014 PACER
7	NOTICE TO PARTIES OF COURT-DIRECTED ADR PROGRAM filed. (esa) (Entered: 06/02/2014)	June 2, 2014	June 2, 2014 PACER
8	21 DAY Summons issued re Complaint 1 as to defendants Chase Manhattan Bank USA, N.A., JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. (esa) (Entered: 06/02/2014)	June 2, 2014	June 2, 2014 PACER
9	NOTICE OF FILING FEE DUE on Pro Hac Vice Application mailed to attorney Steve W. Berman for Plaintiff City of Los Angeles. Pro Hac Vice application has not been received by the court. Please return your completed Application of Non-Resident Attorney to Appear in a Specific Case, form G-64, or a copy of the Notice of Electronic Filing of your application and the $325.00 fee and this notice immediately. Out-of-state federal government attorneys who are not employed by the U.S. Department of Justice are required to file a Pro Hac Vice application;no filing fee is required. You have been removed as counsel of record from this case for failure to submit this filing fee. (esa) (Entered: 06/02/2014)	June 2, 2014	June 2, 2014 PACER
10	NOTICE OF FILING FEE DUE on Pro Hac Vice Application mailed to attorney Robert S Peck for Plaintiff City of Los Angeles. Pro Hac Vice application has not been received by the court. Please return your completed Application of Non-Resident Attorney to Appear in a Specific Case, form G-64, or a copy of the Notice of Electronic Filing of your application and the $325.00 fee and this notice immediately. Out-of-state federal government attorneys who are not employed by the U.S. Department of Justice are required to file a Pro Hac Vice application;no filing fee is required. You have been removed as counsel of record from this case for failure to submit this filing fee. (esa) (Entered: 06/02/2014)	June 2, 2014	June 2, 2014 PACER
11	NOTICE of Appearance filed by attorney Steven J Olson on behalf of Defendants JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. (Attorney Steven J Olson added to party JPMorgan Chase & Co.(pty:dft), Attorney Steven J Olson added to party JPMorgan Chase Bank, N.A.(pty:dft))(Olson, Steven) (Entered: 06/05/2014)	June 5, 2014	June 5, 2014 PACER
12	NOTICE of Appearance filed by attorney Elizabeth Lemond McKeen on behalf of Defendants JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. (Attorney Elizabeth Lemond McKeen added to party JPMorgan Chase & Co.(pty:dft), Attorney Elizabeth Lemond McKeen added to party JPMorgan Chase Bank, N.A.(pty:dft))(McKeen, Elizabeth) (Entered: 06/05/2014)	June 5, 2014	June 5, 2014 PACER
13	NOTICE of Appearance filed by attorney Robert M Swerdlow on behalf of Defendants JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. (Attorney Robert M Swerdlow added to party JPMorgan Chase & Co.(pty:dft), Attorney Robert M Swerdlow added to party JPMorgan Chase Bank, N.A.(pty:dft))(Swerdlow, Robert) (Entered: 06/05/2014)	June 5, 2014	June 5, 2014 PACER
14	NOTICE of Appearance filed by attorney Ashley M Pavel on behalf of Defendants JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. (Attorney Ashley M Pavel added to party JPMorgan Chase & Co.(pty:dft), Attorney Ashley M Pavel added to party JPMorgan Chase Bank, N.A.(pty:dft))(Pavel, Ashley) (Entered: 06/05/2014)	June 5, 2014	June 5, 2014 PACER
15	RESPONSE filed by Defendants JPMorgan Chase & Co., JPMorgan Chase Bank, N.A.to Notice of Related Case(s) 5 (Olson, Steven) (Entered: 06/05/2014)	June 5, 2014	June 5, 2014 PACER
16	CERTIFICATION and NOTICE of Interested Parties filed by Defendants JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., (Olson, Steven) (Entered: 06/05/2014)	June 5, 2014	June 5, 2014 PACER
17	ORDER RE TRANSFER PURSUANT TO GENERAL ORDER 14-03 -Related Case- filed. Related Case No: CV 13-09007 ODW(RZx). Case transferred from Judge Dolly M. Gee and Magistrate Judge Michael R. Wilner to Judge Otis D. Wright, II and Magistrate Judge Ralph Zarefsky for all further proceedings. The case number will now reflect the initials of the transferee Judge CV 14-04168 ODW(RZx). Signed by Judge Otis D. Wright, II (rn) (Entered: 06/05/2014)	June 5, 2014	June 5, 2014 PACER
18	MINUTE ORDER IN CHAMBERS by Judge Otis D Wright, II: This action has been assigned to the calendar of Judge Otis D. Wright II. Counsel are encouraged to review the Central Districts website for additional information. ( SEE DOCUMENT FOR SPECIFIC FILING REQUIREMENTS AND INFORMATION; AND REFER TO JUDGES PROCEDURES AND SCHEDULES FOR DETAILED INSTRUCTIONS RE SUBMISSION OF SEALED DOCUMENTS, EXCLUDING THOSE SUBMITTED BY PRO SE PARTIES AND IN CAMERA FILINGS ). (lc) (Entered: 06/06/2014)	June 6, 2014	June 6, 2014 PACER
19	PROOF OF SERVICE Executed by Plaintiff City of Los Angeles, upon Defendant JPMorgan Chase Bank, N.A. served on 6/4/2014, answer due 6/25/2014. Service of the Summons and Complaint were executed upon Jan Lapinid, Process Specialist at CT Corporation in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Byszewski, Elaine) (Entered: 06/09/2014)	June 9, 2014	June 9, 2014 PACER
20	NOTICE of Appearance by James P. Clark filed by Plaintiff City of Los Angeles. (Byszewski, Elaine) (Entered: 06/09/2014)	June 9, 2014	June 9, 2014 PACER
21	NOTICE of Appearance by Howard Liberson filed by Plaintiff City of Los Angeles. (Byszewski, Elaine) (Entered: 06/09/2014)	June 9, 2014	June 9, 2014 PACER
22	NOTICE of Appearance by Joel Liberson filed by Plaintiff City of Los Angeles. (Byszewski, Elaine) (Entered: 06/09/2014)	June 9, 2014	June 9, 2014 PACER
23	NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: Notice (Other) 20, Notice (Other) 22, Notice (Other) 21 . The following error(s) was found: Incorrect event selected. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (ak) (Entered: 06/17/2014)	June 17, 2014	June 17, 2014 PACER
24	PROOF OF SERVICE Executed by Plaintiff City of Los Angeles, upon Defendant JPMorgan Chase & Co. served on 6/4/2014, answer due 6/25/2014. Service of the Summons and Complaint were executed upon Nora Dindyal, Process Specialist at CT Corporation, Agent for Service of Process in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Byszewski, Elaine) (Entered: 06/19/2014)	June 19, 2014	June 19, 2014 PACER
25	PROOF OF SERVICE Executed by Plaintiff City of Los Angeles, upon Defendant Chase Manhattan Bank USA, N.A. served on 6/4/2014, answer due 6/25/2014. Service of the Summons and Complaint were executed upon Nora Dindyal, Process Specialist for CT Corporation, Agent for Service of Process in compliance with Federal Rules of Civil Procedure by personal service. Original Summons returned. (Byszewski, Elaine) (Entered: 06/19/2014)	June 19, 2014	June 19, 2014 PACER
26	NOTICE OF ERRATA filed by Plaintiff City of Los Angeles. correcting Service of Summons and Complaint Returned Executed (21 days), 24 (Attachments: # 1 Exhibit Proof of Service of Summons - JPMorgan Chase & Co.)(Byszewski, Elaine) (Entered: 06/19/2014) 1 Exhibit Proof of Service of Summons - JPMorgan Chase & Co. View on PACER	June 19, 2014	June 19, 2014 PACER
27	NOTICE OF ERRATA filed by Plaintiff City of Los Angeles. correcting Service of Summons and Complaint Returned Executed (21 days), 25 (Attachments: # 1 Exhibit Proof of Service of Summons - Chase Manhattan Bank USA, N.A.)(Byszewski, Elaine) (Entered: 06/19/2014) 1 Exhibit Proof of Service of Summons - Chase Manhattan Bank USA, N.A. View on PACER	June 19, 2014	June 19, 2014 PACER
28	NOTICE OF MOTION AND MOTION to Dismiss Case filed by Defendants Chase Manhattan Bank USA, N.A., JPMorgan Chase & Co., JPMorgan Chase Bank, N.A.. Motion set for hearing on 8/4/2014 at 01:30 PM before Judge Otis D. Wright II. (Attachments: # 1 Memorandum of Points and Authorities, # 2 Declaration of Petru Stoianovici, # 3 Proposed Order)(Attorney Steven J Olson added to party Chase Manhattan Bank USA, N.A.(pty:dft))(Olson, Steven) (Entered: 06/25/2014) 1 Memorandum of Points and Authorities View on PACER 2 Declaration of Petru Stoianovici View on PACER 3 Proposed Order View on PACER	June 25, 2014	June 25, 2014 PACER
29	NOTICE of Interested Parties filed by Defendant Chase Manhattan Bank USA, N.A., JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., (Olson, Steven) (Entered: 06/25/2014)	June 25, 2014	June 25, 2014 PACER
30	REQUEST FOR JUDICIAL NOTICE re MOTION to Dismiss Case 28 filed by Defendants Chase Manhattan Bank USA, N.A., JPMorgan Chase & Co., JPMorgan Chase Bank, N.A.. (Olson, Steven) (Entered: 06/25/2014)	June 25, 2014	June 25, 2014 PACER
31	APPLICATION for attorney Steve W. Berman to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973-14030951 paid.) filed by Plaintiff City of Los Angeles. (Attachments: # 1 Proposed Order)(Byszewski, Elaine) (Entered: 06/26/2014) 1 Proposed Order View on PACER	June 26, 2014	June 26, 2014 PACER
32	Opposition re: MOTION to Dismiss Case 28 PLAINTIFF'S OPPOSITION TO DEFENDANTS' MOTION TO DISMISS filed by Plaintiff City of Los Angeles. (Attachments: # 1 Declaration of Elaine T. Byszewski in Support of Plaintiff's Opposition to Defendants' Motion to Dismiss, # 2 Exhibit A)(Byszewski, Elaine) (Entered: 07/14/2014) 1 Declaration of Elaine T. Byszewski in Support of Plaintiff's Opposition to View on PACER 2 Exhibit A View on PACER	July 14, 2014	July 14, 2014 PACER
33	ORDER by Judge Otis D. Wright, II: granting 31 Application to Appear Pro Hac Vice by Attorney Steve W. Berman on behalf of Plaintiff, designating Elaine T. Byszewski as local counsel. (lt) (Entered: 07/16/2014)	July 15, 2014	July 15, 2014 PACER
34	APPLICATION for attorney Robert S. Peck to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973-14138423 paid.) filed by plaintiff City of Los Angeles. (Attachments: # 1 Proposed Order)(Byszewski, Elaine) (Entered: 07/18/2014) 1 Proposed Order View on PACER	July 18, 2014	July 18, 2014 PACER
35	REPLY in support of MOTION to Dismiss Case 28 filed by Defendants Chase Manhattan Bank USA, N.A., JPMorgan Chase & Co., JPMorgan Chase Bank, N.A.. (Olson, Steven) (Entered: 07/21/2014)	July 21, 2014	July 21, 2014 PACER
36	ORDER by Judge Otis D. Wright, II: granting 34 Application to Appear Pro Hac Vice by Attorney Robert S. Peck on behalf of City of Los Angeles, designating Elaine T. Byszewski as local counsel. (lt) (Entered: 07/22/2014)	July 21, 2014	July 21, 2014 PACER
37	MINUTES (IN CHAMBERS): Order Vacating Hearing on Motion to Dismiss Case 28 by Judge Otis D. Wright, II: The hearing on the above-referenced motion, scheduled for August 4, 2014 at 1:30 P.M., is hereby VACATED and taken off calendar. No appearances are necessary. The matter stands, submitted, and will be decided upon without oral argument. An order will issue. (bp) (Entered: 07/29/2014)	July 28, 2014	July 28, 2014 PACER
38	NOTICE of Supplemental Authority filed by Plaintiff City of Los Angeles. NOTICE OF SUPPLEMENTAL AUTHORITY IN SUPPORT OF PLAINTIFF'S OPPOSITION TO DEFENDANTS' MOTION TO DISMISS (Attachments: # 1 Exhibit A)(Byszewski, Elaine) (Entered: 07/30/2014) 1 Exhibit A View on PACER	July 30, 2014	July 30, 2014 PACER
39	RESPONSE filed by Defendants Chase Manhattan Bank USA, N.A., JPMorgan Chase & Co., JPMorgan Chase Bank, N.A.to Notice (Other) 38 /Response to Plaintiff's Notice of Supplemental Authority (Olson, Steven) (Entered: 07/31/2014)	July 31, 2014	July 31, 2014 PACER
40	ORDER GRANTING DEFENDANTS' MOTION TO DISMISS WITH LEAVE TO AMEND 28 by Judge Otis D. Wright, II: The Court finds the FIRREA bars this Court from hearing the City's claims as they relate to WaMu's discriminitory lending practices. The City was required to exhaust its claims relating to WaMu with FDIC, which the City has not alleged. Accordingly, the City's allegations against Chase relating to WaMu's conduct are DISMISSED. The City shall file an amended complaint no later than 21 days from the date of this Order (bp) . (Entered: 08/06/2014)	Aug. 5, 2014	Aug. 5, 2014 RECAP

Case: City of Los Angeles v. JPMorgan Chase

2:14-cv-04168 | U.S. District Court for the Central District of California

Case Summary

People

Documents in the Clearinghouse

Resources

Docket

Case Details