Longman v. Wachovia Bank, N.A.
2012 U.S. App. LEXIS 25930
| 2d Cir. | 2012Background
- Longman, an experienced real estate developer, bought Florida land for $250,000 secured by a balloon note from Wachovia.
- The note required monthly interest for three years before the balloon payment of $231,220.99 was due.
- Longman made monthly interest payments, but did not pay the balloon amount when due.
- Wachovia continued reporting Longman as late, despite the payments, and advised short sale options.
- Longman sued Wachovia in 2009 alleging willful noncompliance with the Fair Credit Reporting Act, among other claims; the district court granted summary judgment in 2011, and the court affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there is a private right of action for § 1681s-2(a) violations | Longman argues for a private right of action | Wachovia argues no private right of action exists | No private right of action for § 1681s-2(a) violations |
| Whether the district court abused its discretion by denying leave to amend § 1681s-2(b) claim | Longman contends amendment should be allowed | Wachovia argues undue delay and prejudice | No abuse of discretion; leave to amend denied |
Key Cases Cited
- Boggio v. USAA Federal Sav. Bank, 696 F.3d 611 (6th Cir. 2012) (private-right-of-action timing and scope under 1681s-2(a))
- Sanders v. Mountain American Fed. Credit Union, 689 F.3d 1138 (10th Cir. 2012) (private right of action under 1681s-2(a) denial in similar contexts)
- Simms-Parris v. Countrywide Fin. Corp., 652 F.3d 355 (3d Cir. 2011) (discussion of 1681s-2(a) private rights limitations)
- Chiang v. Verizon New Eng. Inc., 595 F.3d 26 (1st Cir. 2010) (interpretation of 1681s-2(a)(8) and duties to investigate disputes)
- Saunders v. Branch Banking & Trust Co. of Va., 526 F.3d 142 (4th Cir. 2008) (limitations on private actions under 1681s-2(a))
- Nelson v. Chase Manhattan Mort. Corp., 282 F.3d 1057 (9th Cir. 2002) (private actions under FCRA provisions)
- City of New York v. Group Health Inc., 649 F.3d 151 (2d Cir. 2011) (undue delay in seeking amendment to pleadings)