First American Financial v. Edwards

Summary

The U.S. Supreme Court agreed to review First American Financial Corp. v. Edwards, a case from the 9th Circuit Court of appeals involving class certification. A putative class action was filed against a company in violation of the Real Estate Settlement Procedures Act of 1974 (RESPA). Plaintiff-buyer alleged that the company violated RESPA by paying millions of dollars to individual title companies in exchange for exclusive referral agreements. The company argued that plaintiff-buyer had not suffered an injury because she failed to allege that the charge for title insurance was higher than it would have been without the exclusivity agreement. The district court denied plaintiff’s motion for class certification for lack of standing. This court will determine whether RESPA gave rise to a statutory cause of action whether or not an overcharge occurred.

— Brian Cardile