People of the State of California and City of Los Angeles v. Deutsche Bank National Trust Co.
Published: Jul. 13, 2013 | Result Date: Jun. 28, 2013 | Filing Date: Jan. 1, 1900 |Case number: BC460878 Settlement – $10,000,000
Court
L.A. Superior Central
Attorneys
Plaintiff
Carmen A. Trutanich
(Tucker Ellis LLP)
Defendant
John J. Rosenthal
(Winston & Strawn LLP)
Brian M. Jazaeri
(Morgan, Lewis & Bockius LLP)
Facts
The State of California and the City of Los Angeles sued Deutsche Bank National Trust Co. accusing the bank of allowing foreclosed properties to fall into disrepair.
About 2,000 foreclosed homes in the San Fernando Valley, South Los Angeles, and other areas fell into squalor. Many became graffiti-scarred dens for squatters and criminals.
The bank disputed plaintiffs' claims, and repeatedly advised officials that loan servicers were contractually responsible for both the maintenance of foreclosed properties.
Damages
The lawsuit sought hundreds of millions of dollars in penalties and restitution.
Result
Without admitting any wrongdoing, the bank agreed to settle the lawsuit for $10 million, to be paid by various loan servicers and securitization trusts, and not by the bank. The bank also agreed to ensure that foreclosed properties are well-maintained in Los Angeles.
Other Information
FILING DATE: March 4, 2011
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