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Couple should have jury trial on legal claims

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A couple whose home is being foreclosed on is entitled to a jury trial on their legal claims against the mortgage holder and loan servicer, the Indiana Court of Appeals ruled today.

In Mary Beth and Perry Lucas v. U.S. Bank, N.A., et al., No. 28A01-0910-CV-482, Mary Beth and Perry Lucas filed an interlocutory appeal after their request for a jury trial on several counterclaims and third-party claims raised against U.S Bank and Litton Loan Servicing was denied. The Lucases had problems almost immediately after closing their mortgage. They claimed the loan rate and monthly payments were incorrect and there were disputes about the purchase of hazard insurance and escrow amount problems.

The Lucases filed for Chapter 7 bankruptcy protection a little over a year after entering into the loan. The bankruptcy was discharged after four months, but there were issues about fees between the Lucases and Litton. The couple even sought assistance from Indiana Legal Services.

U.S. Bank filed a complaint to foreclose on the mortgage in early 2009; the Lucases alleged that Argent, the company they originally had the loan through, violated the Real Estate Settlement and Procedures Act, that U.S. Bank committed conversion and deception under the Civil Damages Statute, and that U.S. Bank breached its contractual obligations and its duty of good faith and fair dealing. They also sued Litton for breach of contract, breach of duty of good faith and fair dealing, and claimed Litton violated the Fair Debt Collection Practices Act, and RESPA. The couple also claims they are entitled to damages because Litton committed conversion.

Using Songer v. Civitas Bank, 771 N.E.2d 61, 63 (Ind. 2002), the appellate court analyzed the instant case and found the Lucases to be entitled to a jury trial on their legal claims. While a foreclosure action is essentially equitable and it’s well settled that equitable claims are tried to a court instead of a jury, the fact that a cause contains a foreclosure action doesn’t necessarily draw the entire cause into equity, wrote Chief Judge John Baker.

The claims against the bank and loan servicer are grounded in federal and state statutory law, and state common law, all of which are legal causes of action. The majority of relief requested by the Lucases is money damages, a legal remedy, wrote the chief judge. In addition, the nature of many of their claims is different from the bank’s request to foreclose as they are grounded in consumer protection statutes.

“In light of the nature of the claims, the rights and interests involved, and the majority of the relief requested, we cannot say that the essential features of this cause are equitable,” he wrote.

The cause was remanded with instructions to grant the Lucases’ motion for a jury trial on their legal claims.
 

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  1. I have been on this program while on parole from 2011-2013. No person should be forced mentally to share private details of their personal life with total strangers. Also giving permission for a mental therapist to report to your parole agent that your not participating in group therapy because you don't have the financial mean to be in the group therapy. I was personally singled out and sent back three times for not having money and also sent back within the six month when you aren't to be sent according to state law. I will work to het this INSOMM's removed from this state. I also had twelve or thirteen parole agents with a fifteen month period. Thanks for your time.

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  4. "Meanwhile small- and mid-size firms are getting squeezed and likely will not survive unless they become a boutique firm." I've been a business attorney in small, and now mid-size firm for over 30 years, and for over 30 years legal consultants have been preaching this exact same mantra of impending doom for small and mid-sized firms -- verbatim. This claim apparently helps them gin up merger opportunities from smaller firms who become convinced that they need to become larger overnight. The claim that large corporations are interested in cost-saving and efficiency has likewise been preached for decades, and is likewise bunk. If large corporations had any real interest in saving money they wouldn't use large law firms whose rates are substantially higher than those of high-quality mid-sized firms.

  5. The family is the foundation of all human government. That is the Grand Design. Modern governments throw off this Design and make bureaucratic war against the family, as does Hollywood and cultural elitists such as third wave feminists. Since WWII we have been on a ship of fools that way, with both the elite and government and their social engineering hacks relentlessly attacking the very foundation of social order. And their success? See it in the streets of Fergusson, on the food stamp doles (mostly broken families)and in the above article. Reject the Grand Design for true social function, enter the Glorious State to manage social dysfunction. Our Brave New World will be a prison camp, and we will welcome it as the only way to manage given the anarchy without it.

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