Class Action Against Loan Servicer Dismissed and Class Certification Denied
On January 18, 2011, a class action complaint involving 150 loans and over $11 million was dismissed with prejudice on summary judgment and class certification was denied as moot. The complaint alleged the national loan servicer had engaged in illegal debt collection practices violating the state consumer protection statute, the West Virginia Consumer Credit Protection Act (WVCCPA). The district court had jurisdiction under the Class Action Fairness Act (CAFA).
Defendant filed for summary judgment based on several affirmative defenses, including the statute of limitations, which Defendant argued also required denial of Plaintiffs’ motion for class certification. In a case of first impression, the Court found that the WVCCPA had a one-year statute of limitation that was triggered on the date the loan was accelerated. The Court dismissed all Plaintiffs’ claims under the consumer statute and remanded the remaining count for breach of contract based on lack of jurisdiction after indicating Plaintiffs had failed to state a claim. Accordingly, the Court denied class certification as moot and ordered the case be stricken from the docket.
A copy of the court’s opinion and order is attached here. Delebreau v. Bayview Loan Servicing, LLC, No. 6:09-cv-245 (S.D.W.Va. Jan. 18, 2011) (Goodwin, C.J.).
John Lynch and Jason Manning are counsel of record for Bayview Loan Servicing, LLC. Please do not hesitate to contact John Lynch or Jason Manning if you have questions.