Robert Bennett v. Shaun Donovan
403 U.S. App. D.C. 262
| D.C. Cir. | 2013Background
- Reverse mortgage program insured by HUD; 12 U.S.C. § 1715z-20(j) protects homeowners and spouses; HUD regs implement the Act via 24 C.F.R. § 206.27(c)(1).
- Bennett and Joseph are surviving spouses, not actual borrowers, who relied on brokers’ assurances of protection from displacement.
- Lenders seek immediate repayment after spouses died; foreclosure proceedings ensued under mortgage terms that make the balance due upon death if not surviving borrower resides in the home.
- District court dismissed for lack of standing because relief seemed to depend on third-party lender actions; court found no redressability.
- Court holds appellants have standing and remands for APA relief consideration; HUD may provide complete relief under 12 U.S.C. § 1715z-20(i).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellants have standing to challenge HUD regulation | Bennett argues HUD action redresses injury | HUD regulation independent of lenders foreclosing | Appellants have standing; redressable via HUD relief on remand |
| Whether HUD can provide complete relief under §1715z-20(i) | HUD could assign mortgages and pay balances to prevent foreclosure | Statutory text unclear about such relief | Remand possible; HUD could use §1715z-20(i) to eliminate third-party uncertainty |
Key Cases Cited
- National Wrestling Coaches Ass’n v. Department of Education, 366 F.3d 930 (D.C. Cir. 2004) (standing when third party is regulated, not before court, is difficult)
- Abigail Alliance for Better Access to Developmental Drugs v. Eschenbach, 469 F.3d 129 (D.C. Cir. 2006) (public interest standing where parties have clear incentives)
- Northern Air Cargo v. U.S. Postal Serv., 674 F.3d 852 (D.C. Cir. 2012) (not APA-specific; agency remand after unlawful action)