University of Michigan Law School
Civil Rights Litigation Clearinghouse
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Case Name United States v. Citizens Republic Bancorp, Inc. FH-MI-0009
Docket / Court 2:11-cv-11976 ( E.D. Mich. )
State/Territory Michigan
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
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 ... read more >
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.

Megan Richardson - 04/03/2014


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Issues and Causes of Action
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Issues
Content of Injunction
Comply with advertising/recruiting requirements
Develop anti-discrimination policy
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
Race discrimination
General
Predatory lending
Plaintiff Type
U.S. Dept of Justice plaintiff
Race
Black
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
Defendant(s) Citizens Republic Bancorp, Inc.
Plaintiff Description United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement
Indexed Lawyer Organizations U.S. Dept. of Justice Civil Rights Division
Class action status sought No
Class action status granted No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Damages
Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Private Settlement Agreement
Order Duration not on record
Case Closing Year 2011
Case Ongoing No
Docket(s)
2:11-cv-11976 (E.D. Mich.) 06/28/2011
FH-MI-0009-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 05/05/2011
FH-MI-0009-0003.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Motion of Entry of Proposed Agreed Order 05/17/2011
FH-MI-0009-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 05/24/2011 (2011 WL 2014873) (E.D. Mich.)
FH-MI-0009-0001.pdf | WESTLAW | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Stipulated Notice of Dismissal 06/23/2011
FH-MI-0009-0004.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Zatkoff, Lawrence Paul (E.D. Mich.)
FH-MI-0009-0001 | FH-MI-0009-9000
Monitors/Masters None on record
Plaintiff's Lawyers Holder, Eric H. Jr. (District of Columbia)
FH-MI-0009-0003 | FH-MI-0009-0004
Levy, Judith Ellen (Michigan)
FH-MI-0009-0002 | FH-MI-0009-0003 | FH-MI-0009-0004 | FH-MI-0009-9000
McQuade, Barbara L. (Michigan)
FH-MI-0009-0002 | FH-MI-0009-0003 | FH-MI-0009-0004
Miller, Coty R. (District of Columbia)
FH-MI-0009-0002 | FH-MI-0009-0003 | FH-MI-0009-0004
Murphy, Donna M. (District of Columbia)
FH-MI-0009-0002 | FH-MI-0009-0003 | FH-MI-0009-0004
Perez, Thomas E. (District of Columbia)
FH-MI-0009-0003 | FH-MI-0009-0004
Rosenbaum, Steven H. (District of Columbia)
FH-MI-0009-0002 | FH-MI-0009-0003 | FH-MI-0009-0004
Defendant's Lawyers Blase, Gregory M. (Massachusetts)
FH-MI-0009-0004 | FH-MI-0009-9000
Brody, Melanie H. (Florida)
FH-MI-0009-0004
Hancock, Paul F. (Florida)
FH-MI-0009-0004
Malpass, Melissa Sanchez (Florida)
FH-MI-0009-0004
Other Lawyers None on record

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