Banking & Finance Law Report

Tag Archives: Wrongful Attempted Foreclosure

A Certified Question About “Wrongful Attempted Foreclosure” Likely To Be Left Unanswered For Now

On May 2, we reported here on a trifecta of noteworthy lending cases that were accepted for review by the Ohio Supreme Court.  One of the three cases discussed in that post, Corbett v. Beneficial Ohio, Inc., is a certified-question case from the U.S. District Court for the Southern District of Ohio, in which District Judge Rice asked the Ohio Supreme Court whether the State of Ohio recognized a cause of action for “wrongful attempted foreclosure” and, if so, what the elements of such a tort are.  Last week, however, the parties to the underlying federal case filed a joint motion in the Ohio Supreme Court, asking that the certified question be withdrawn due to settlement and Rule 41(a) dismissal of the federal suit.  Given this development, and the fact that the Supreme Court answers certified questions that “may be determinative of the [federal] proceeding,” S.Ct.Prac.R. 18.1, the status of this tort in Ohio is likely to remain an open question for the time being.  Stay tuned to the Banking & Finance Law Report for any further developments.…

An Ohio Supreme Court “Trifecta” of Noteworthy Lending Cases on the Docket

At the end of April, the Ohio Supreme Court agreed to hear three notable cases that readers of this blog may wish to monitor – or perhaps even participate in as amici curiae. First, the Court has agreed to resolve a conflict among Ohio’s appellate districts regarding whether the Statute of Frauds precludes a foreclosure defendant from asserting an oral forbearance agreement as a defense. Next, the Court has agreed to answer a question certified from federal court as to whether Ohio recognizes the tort of “wrongful attempted foreclosure.” Third, the Court has agreed to hear a payday-lending case that has attracted media attention, concerning the interplay between Ohio’s Mortgage Lending Act and the more recent Short-Term Lender Law. For additional information about these three cases, read more here.…

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