Brown v. CitiMortgage, Inc.
2011 U.S. Dist. LEXIS 117612
S.D. Ala.2011Background
- Plaintiffs Michael and Rosemarie Brown allege CitiMortgage acquired their mortgageNote from Travelers Bank & Trust in Oct 2010.
- Browns claim Citi failed to provide the required 30-day notice of the transfer under 15 U.S.C. § 1641(g).
- Plaintiffs seek statutory damages under 15 U.S.C. § 1640(a) for § 1641(g) violation, without alleging actual damages.
- CitiMove to Dismiss under Rule 12(b)(6) arguing §1641(g) claims require actual damages to be actionable.
- Court analyzes whether statutory damages are recoverable even absent actual damages, and whether a finance charge requirement applies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are statutory damages available without actual damages? | Browns rely on statutory damages under §1640(a)(2)(A). | Citi contends statutory damages require a related finance charge or actual damages. | Statutory damages available without actual damages; motion denied. |
| Does §1641(g) violation necessitate a finance charge for statutory damages? | Statutory damages can be awarded regardless of a finance charge. | Statutory damages depend on a finance charge linked to the violation. | Not limited to finance charges; statutory minimum applies when no charge or small charge exists. |
Key Cases Cited
- Mourning v. Family Publications Service, Inc., 411 U.S. 356 (1973) (minimum civil penalty proper when no finance charge)
- Koons Buick Pontiac GMC, Inc. v. Nigh, 543 U.S. 50 (2004) (statutory damages twice the finance charge where applicable)
- Turner v. Beneficial Corp., 242 F.3d 1023 (11th Cir.2001) (statutory damages available to enforce TILA; not limited to actual damages)
- Christ v. Beneficial Corp., 547 F.3d 1292 (11th Cir.2008) (statutory penalties range with minimums and floors)
- In re Whitley, 772 F.2d 815 (11th Cir.1985) (statutory damages must be imposed for TILA violations)
- Bragg v. Bill Heard Chevrolet, Inc., 374 F.3d 1060 (11th Cir.2004) (liberal construction of TILA remedial scheme)
- Purtle v. Eldridge Auto Sales, Inc., 91 F.3d 797 (6th Cir.1996) (statutory damages authorized even when no actual damages)