Filed Date: May 5, 2011
Closed Date: June 28, 2011
Clearinghouse coding complete
The Department of Justice filed suit on May 5, 2011 in the U.S. District Court for the Eastern District of Michigan against Citizens Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that Citizens Bank had engaged in a discriminatory lending practice called redlining by unlawfully failing to provide its lending products and services on an equal basis to majority-minority census tracts in southeastern Michigan. These allegations were based off of results from a routine bank examination completed by the Federal Reserve in 2007.
The two parties filed a proposed settlement agreement on May 5, 2011 after contentious negotiations. According to the draft agreed order, the Defendant-lender agreed to open branch offices during the term of the settlement agreement, market its expansion to majority-minority census tracts, hire staff to specialize in community lending, and contribute funding to the City of Detroit to go towards a grant program that revitalizes housing.
In a surprising turn of events, on May 10, 2011 the court (Judge Zatkoff) signed an order declining to accept the proposed settlement agreement that both parties had already agreed upon. The two parties retreated back to the negotiating table, reached their own settlement similar to the draft agreed order submitted to the court on their own, and the Department of Justice with requested that the pending court case be dismissed with prejudice by the court. On June 28, 2011 the court (Judge Zatkoff) agreed to dismiss the case with prejudice.
Similar cases brought forth by the Department of Justice against lenders due to allegations of redlining include United States v. Centier Bank, United States v. First American Bank, and United States v. Old Kent Financial Corporation.
Summary Authors
Megan Richardson (4/3/2014)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/5150609/parties/united-states-v-citizens-republic-bancorp-inc/
Holder, Eric H. Jr. (District of Columbia)
Levy, Judith Ellen (Michigan)
Blase, Gregory M. (Massachusetts)
Brody, Melanie H. (Florida)
Hancock, Paul F. (Florida)
Zatkoff, Lawrence Paul (Michigan)
See docket on RECAP: https://www.courtlistener.com/docket/5150609/united-states-v-citizens-republic-bancorp-inc/
Last updated Feb. 10, 2024, 3:01 a.m.
State / Territory: Michigan
Case Type(s):
Fair Housing/Lending/Insurance
Key Dates
Filing Date: May 5, 2011
Closing Date: June 28, 2011
Case Ongoing: No
Plaintiffs
Plaintiff Description:
United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement
Plaintiff Type(s):
U.S. Dept of Justice plaintiff
Attorney Organizations:
U.S. Dept. of Justice Civil Rights Division
Public Interest Lawyer: Yes
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
Citizens Republic Bancorp, Inc. , Private Entity/Person
Defendant Type(s):
Case Details
Causes of Action:
Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Available Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Content of Injunction:
Develop anti-discrimination policy
Comply with advertising/recruiting requirements
Issues
General:
Discrimination-area:
Discrimination-basis:
Race: