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Civil Rights Litigation Clearinghouse
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Case Name United States v. First United Security Bank FH-AL-0007
Docket / Court 1:09-cv-00644 ( S.D. Ala. )
State/Territory Alabama
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On September 30th, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama (Mobile) under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The plaintiff, represented by attorneys from the U. S. ... read more >
On September 30th, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama (Mobile) under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The plaintiff, represented by attorneys from the U. S. Attorney's Office and the Department of Justice, claimed that the Bank engaged in a pattern or practice of home-mortgage lending discrimination against black applicants. They asked the Court to declare that the Bank's practices violated the Fair Housing Act and the Equal Credit Opportunity Act, to enjoin the Bank from continuing the discriminatory practice, to award monetary damages to all victims of the Bank's allegedly discriminatory practices, and to asses a civil penalty against the Bank.

Specifically, the U.S. claimed that the Federal Deposit Insurance Corporation (FDIC) had reason to believe that in 2004 the Bank discriminated against black applicants, on the basis of race, in setting higher interest rates for first-lien refinance loans for owner-occupied one-to-four family houses, and by failing to meet the lending needs of majority African-American tracts in west central Alabama on an equal basis with majority white tracts.

The case was assigned to Chief Judge William H. Steele; on November 18th, 2009, he entered the Agreed Order for Resolution. This Agreement stated that the Bank had implemented and will continue to implement policies and procedures to ensure that the pricing of its residential loan is done in a nondiscriminatory manner. The Bank will also compensate certain African-American borrowers. The Bank shall ensure that it provides all people, regardless of the majority race or color of the area, with the opportunity to apply for and obtain credit. This will be accomplished by using a standard pricing matrix that cannot be varied from except in special circumstances, the bank shall make all reasonable effort to open branches in the majority African-American areas that it serves, the bank shall reach out and advertise on black-oriented radio and print medium, asses the credit needs of consumers in majority black areas, and engage in consumer education.

The Agreement requires annual reports by the bank, for at least four years after its entry. It ends fifty-two and a half months after the filing of the fourth of those reports, unless the Department of Justice deems that the Bank has not followed the terms of the Agreement. Thus the agreement will remain in force until at least 2014. The Court retains jurisdiction for the duration of the agreement.

Megan Dolan - 05/28/2014


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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
Discrimination Prohibition
Hire
Provide antidiscrimination training
Recordkeeping
Reporting
Defendant-type
Bank or credit provider
Discrimination-area
Housing Sales/Rental
Lending
Discrimination-basis
Race discrimination
General
Disparate Treatment
Funding
Housing
Pattern or Practice
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) First United Security Bank
Plaintiff Description The United States Department of Justice, vindicating the rights of African-American loan applicants.
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 Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2009 - 2014
Case Closing Year 2014
Case Ongoing Yes
Additional Resources
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Case Studies Insurer Must Pay $100.5 Million in Redlining Case
The New York Times
Written: Oct. 27, 1998
By: Joseph B. Treaster
[ Detail ] [ External Link ]

  Nationwide Settles Virginia Redlining Suit
Property Casualty 360
Written: May. 06, 2000
By: Amanda Levin
[ Detail ] [ External Link ]

  The Origins of Fair Lending Litigation
Written: Dec. 04, 2008
By: Andrew Nash (Washington University in St. Louis)
[ Detail ] [ PDF ] [ External Link ]

Docket(s)
1:09−cv−00644 (S.D. Ala.) 11/18/2009
FH-AL-0007-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 09/30/2009
FH-AL-0007-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Agreed Order for Resolution 11/18/2009 (S.D. Ala.)
FH-AL-0007-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Justice Department Reaches Settlement with First United Security Bank of Thomasville, Alabama, Regarding Alleged Discrimination in Lending 11/30/2009
FH-AL-0007-0003.pdf | Detail
Joint Motion to Amend Order of District Judge 5 Order, by United States of America. (Attachments: # 1 Text of Proposed Order proposed amended order, # 2 memo in support of motion) 05/06/2014
FH-AL-0007-0004.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Amended Agreed Order for Resolution 05/07/2014 (S.D. Ala.)
FH-AL-0007-0005.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Milling, Bert W. Jr. (S.D. Ala.) [Magistrate]
FH-AL-0007-0005 | FH-AL-0007-9000
Steele, William H. (S.D. Ala.) [Magistrate]
FH-AL-0007-0002 | FH-AL-0007-9000
Monitors/Masters None on record
Plaintiff's Lawyers Campos, Marta (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002 | FH-AL-0007-0004 | FH-AL-0007-9000
Holder, Eric H. Jr. (District of Columbia)
FH-AL-0007-0001
King, Loretta (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002
Moore, Gary Alan (Alabama)
FH-AL-0007-0001 | FH-AL-0007-0002 | FH-AL-0007-9000
Murphy, Donna M. (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002
Rosenbaum, Steven H. (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002
Seidel, Eugene A. (Alabama)
FH-AL-0007-0001 | FH-AL-0007-0002
Defendant's Lawyers Brown, Stephen E (Alabama)
FH-AL-0007-0002 | FH-AL-0007-9000
Dulin, John P. Jr. (Alabama)
FH-AL-0007-0002 | FH-AL-0007-0004 | FH-AL-0007-9000
Glancz, Ronald R. (District of Columbia)
FH-AL-0007-0002 | FH-AL-0007-9000
Smith, David Michael (Alabama)
FH-AL-0007-0004
Other Lawyers None on record

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