Facts

Melodie Meyer filed a class action against OneWest Bank FSB and American Security Insurance Co., in connection with force-placed flood insurance.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that defendants required borrowers, like plaintiff, to obtain flood insurance coverage. When borrowers do not, defendants then purchase the required coverage. Plaintiffs alleged that such practice was not standard and inappropriate. Additionally, plaintiff alleged that such conduct was exploitive and constituted self-dealing. Plaintiff also accused defendants of receiving kickbacks for the force-placed flood insurance. Plaintiff filed this action, alleging, among several other causes of action, RICO violations, breach of fiduciary duty, aiding and abetting breach of fiduciary duty and breach of contract, including breach of the implied covenant of good faith and fair dealing.

DEFENDANTS' CONTENTIONS:
Defendants moved to dismiss the complaint for failure to state a claim for relief and federal preemption under the Home Owners' Loan Act.

Result

The court granted defendants' motion to dismiss because Meyer failed to sufficiently allege a RICO violation and her state law claims were preempted. Moreover, because an amendment would be futile, the court dismissed the matter with prejudice.