The U.S. Supreme Court has vacated a district court decision regarding a Fair Housing Act lawsuit, a lawsuit in which CUNA filed an amicus brief. CUNA’s brief asked the U.S. Supreme Court to review Bank of America v. City of Miami and Wells Fargo v. City of Miami in January.
The City of Miami voluntarily dismissed the suits in February, but the Supreme Court decision eliminates the adverse precedent created by the U.S. Court of Appeals for the Eleventh Circuit’s decision.
The city of Miami sued Wells Fargo, Citigroup and Bank of America, arguing that foreclosures and other events stemming from unfavorable mortgages resulted in lost revenue, due to lower property taxes and other incurred expenses.
CUNA’s brief expressed concerns that a decision in favor of the municipality could set a bad precedent that would allow other entities, such as neighboring residents, municipalities and even local businesses, to maintain suits against financial institutions, even if the entity never had any direct dealings with a credit union or bank.