Reformulated Complaint Removed Under CAFA and Dismissed

Fulmore v. Premier Financial Corp., Civil Action No. JFM-09-2028 (D. Md. Oct 29, 2010).

While not really a CAFA filed case, the District of Maryland breezed past the removal and granted the defendants’ motions to dismiss.

In these series of cases, the plaintiffs–borrowers asserted claims against the assignees in connection with second mortgage loans made to them some years ago. In each case the originating lenders assigned the plaintiff’ loans to other financial institutions. The plaintiffs asserted three separate state law claims under: (1) Maryland common law, (2) the Maryland Secondary Mortgage Loan Law, and (3) under the Uniform Commercial Code.

All of the loans in question had been paid off by the borrowers, thus, none of the assignees were attempting to recover anything from the plaintiffs in these actions. Instead, this case involved affirmative claims by the plaintiffs–borrowers against the assignees for the loans and interest the plaintiffs had already paid and for various statutory penalties.

All of the related cases were earlier filed as class action complaints in the state court between 2001 and 2003. The District Court in Maryland pointed out that the class action suit was dismissed on the ground that class claims were overbroad, but were reformulated and refiled and removed to federal court under CAFA.

The defendant-assignees’ motions to dismiss were granted by the District Court.