Cases - Federal Court Dismisses Fraud Claim against Closing Attorney

Federal Court Dismisses Fraud Claim against Closing Attorney

Resolution Date
02/14/2014

Practice Areas
Commercial Litigation
Legal Malpractice

Description

Joe Kingma won the dismissal of claims against an attorney arising from a residential loan closing. The plaintiff alleged that she applied with a co-signer for a loan to purchase a home but that her lender and the closing attorney improperly removed her name from the note and security deed, which prevented her from negotiating a loan modification to stop a foreclosure sale. The U.S. District Court for the Northern District of Georgia dismissed the plaintiff’s fraud claim, concluding that she failed to allege any false representation that the closing attorney made that she relied on to her detriment and that any fraud claim was barred by the statute of limitations. Moreover, the court noted that the plaintiff herself had benefited from any false statements because “she had been residing in a home for which she could not obtain a mortgage solely in her own name, based on a loan apparently taken out by someone else.” The court also dismissed the plaintiff’s under the Fair Debt Collection Practices Act and the Truth in Lending Act based on lack of standing and the statute of limitations.

Attorneys Involved
John L. Bunyan
Johannes S. Kingma

CCS Office
Atlanta