Athey v. Consumers National Bank, 4:19-cv-02686

In early 2019, while still married, Jeremy Athey sought a mortgage from Consumer National Bank (CNB) to buy property in Newton Falls; CNB began prequalification and issued a Commitment conditioned on either a signed spouse release or a final divorce decree.
CNB repeatedly requested Christine Athey’s signature or a divorce decree during underwriting; the Commitment expressly reserved CNB’s right to cancel if conditions were not met.
A Mahoning County Domestic Relations judge ordered Christine to sign a release on March 18, 2019; Athey forwarded that order to CNB, but did not produce a final divorce decree or signed release by the scheduled closing.
On the day of closing CNB withdrew the Commitment and declined to fund the mortgage; Athey instead purchased the property with replacement loans on less favorable terms; his divorce was finalized in August 2019.
Athey sued alleging violations of the Equal Credit Opportunity Act (ECOA), breach of contract, promissory estoppel, and unjust enrichment; CNB moved to dismiss under Rule 12(b)(6).
The court granted CNB’s motion in full, dismissing all claims (ECOA, breach, promissory estoppel withdrawn, and unjust enrichment).

Issue	Plaintiff's Argument	Defendant's Argument	Held
ECOA — Did CNB discriminate based on marital status by withdrawing the Commitment?	Athey: CNB withdrew because he was married; he was qualified and the withdrawal was discriminatory.	CNB: Exception allows requiring spouse signature or decree when necessary under state law; Athey failed to satisfy Commitment conditions.	Dismissed — Athey failed to plead the required comparator element and, as a matter of law, CNB’s refusal was a nondiscriminatory, reasonable step to protect its security.
Breach of Contract — Was the Commitment an enforceable contract obligating CNB to fund?	Athey: Commitment created enforceable obligation to lend.	CNB: The Commitment contained a condition precedent (spouse release or divorce decree) that Athey did not satisfy; no binding contract formed.	Dismissed — no enforceable contract because the condition precedent was unmet.
Promissory Estoppel — Can Athey recover under promissory estoppel?	Athey initially pled it but withdrew the claim in response briefing.	CNB: Move to dismiss.	Dismissed/Withdrawn — Athey voluntarily withdrew this claim.
Unjust Enrichment — Did CNB unjustly retain Athey’s $400 application/commitment fee?	Athey: He paid $400 and it is unjust for CNB to keep it after refusing the loan.	CNB: Athey received the bargained-for underwriting and commitment process; retention not unjust.	Dismissed — Athey failed to show CNB’s retention was unjust; he received the bargained-for exchange.

Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (pleading must state a plausible claim)
Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (court draws reasonable inferences from factual allegations)
Hood v. Midwest Sav. Bank, [citation="95 F. App'x 768"] (6th Cir. 2004) (ECOA prima facie elements)
RL BB Acquisition, LLC v. Bridgemill Commons Dev. Grp., LLC, 754 F.3d 380 (6th Cir. 2014) (burden on creditor to prove ECOA regulatory exceptions)
Evans v. Centralfed Mortg. Co., 815 F.2d 348 (5th Cir. 1987) (creditor may reasonably require spouse signature to perfect security)
McKenzie v. U.S. Home Corp., 704 F.2d 778 (5th Cir. 1983) (similar rule on requiring joint signature or divorce decree)
Barney v. Holzer Clinic, Ltd., 110 F.3d 1207 (6th Cir. 1997) (definition of creditor under ECOA)
Kostelnik v. Helper, 770 N.E.2d 58 (Ohio 2002) (contract elements and meeting of the minds)