Facts

Javier Lopez filed a class action against HSBC Bank USA NA, HSBC Mortgage Co., Assurant Inc., American Casualty Insurance Co., and numerous other entities, concerning force-placed insurance.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that defendants charged him and others similarly situated, "exorbitant" premiums for insurance policies purchased by his lenders or servicers pursuant to the express terms of his and others' mortgages when they failed to maintain continuous insurance on their properties that served as collateral for their loans.

Plaintiff asserted claims for breach of contract, breach of implied covenant of good faith and fair dealing, two counts of unjust enrichment, violations of the Truth in Lending Act, tortious interference with a business relationship, breach of fiduciary duty, and violation of the Florida Deceptive and Unfair Trade Practices Act.

DEFENDANTS' CONTENTIONS:
Defendants moved to dismiss plaintiff's complaint for failure to exhaust administrative remedies. Defendants also argued that plaintiff's complaint should be dismissed for lack of standing.

Result

The parties reached a settlement, with benefits valued over $126 million. The settlement would provide the settlement class with $32 million in monetary relief. The settlement also provided for injunctive relief. It provided for the end to force-placed insurance practices.

Other Information

FILING DATE: March 28, 2013.