Facts

This case involved Real Party in Interest, National Union Fire Insurance Company of Pittsburgh, PA's allegations that its insured, Bridgelock Capital, underwrote an alleged fraudulent real estate-based loan to a straw buyer. National Union's allegations seek to place liability for Bridgelock Capital's payment of the loan based on alleged fraud on Standard Home Lending despite there having been no loan submission by Standard Home to Bridgelock Capital ever.

The actual parties who committed the fraud, if any, as against Bridgelock Capital were Angela Cotton, Terral Toole, Miles Davis a/k/a Rafael Shaw and Lisa Lievanos, all of whom were criminally indicted and convicted based on a complex fraud scheme that sought to defraud, and actually defrauded, lenders. Plaintiff had already entered default judgments for the principal amount of the loan (i.e., $787,500) against all of the above-named parties, as well as against Richard Niewzal.

Standard Home at the Judicial Reference Hearing was successful in establishing that Standard Home was not involved in the alleged fraudulent loan transaction with Bridgelock Capital and that Standard Home is not liable to National Union because neither Standard Home nor any of its agents submitted any loan application, or otherwise conducted any business with Bridgelock Capital that could give rise to liability for any of plaintiff's stated causes of action against Standard Home.

PLAINTIFF CONTENTIONS:
Plaintiff claimed that Standard Home Lending was responsible for the amount of the loan for $787,500.

DEFENDANT CONTENTIONS:
Defendant claimed that Standard Home was not involved in the alleged fraudulent scheme.

Settlement Discussions

Standard Home requested a dismissal.

Result

Judge William Sheffield, retired, did not award anything to the plaintiff, finding that Standard was the prevailing party.

Other Information

Standard Home Lending filed an attorney fee and cost motion. FILING DATE: Aug. 11, 2009.