Case: United States v. First United Security Bank

1:09-cv-00644 | U.S. District Court for the Southern District of Alabama

Filed Date: Sept. 30, 2009

Closed Date: 2016

Clearinghouse coding complete

Case Summary

On September 30, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The Department of Justice claimed that the Bank engaged in a pattern or practice of home-mortgage lending discrimination against black applicants It asked the court to: 1) declare that the Bank's practices violated the Fair Housing Act and the Equal Credit Opportu…

On September 30, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The Department of Justice claimed that the Bank engaged in a pattern or practice of home-mortgage lending discrimination against black applicants It asked the court to: 1) declare that the Bank's practices violated the Fair Housing Act and the Equal Credit Opportunity Act; 2) enjoin the Bank from continuing the discriminatory practice; 3) award monetary damages to all victims of the Bank's allegedly discriminatory practices; and 4) asses a civil penalty against the Bank. Specifically, the Department of Justice 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 by setting higher interest rates for first-lien refinance loans 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 18, 2009, he entered an agreed order for resolution. This agreement stated that the Bank had implemented and would continue to implement policies and procedures that would ensure the pricing of its residential loans were not discriminatory. The bank would also compensate some African-American borrowers under a standard pricing matrix and opening branches in majority African-American areas that it serves. The bank also agreed to asses the credit needs of consumers in majority black areas and engage in consumer education.

This agreement required annual reports by the bank, and was scheduled to terminate in 2014. However, on May 6, 2014 the parties filed a joint motion asking the court to extend the agreement because the bank had been unable to satisfy a provision that required a $500,000 investment in a special fund for lending to minority communities. The submission did not explain why the bank had been unable to make this investment. The agreement was extended for an additional four years or until the bank satisfied the investment requirement, and was approved by Judge Steele on May 7, 2014.

On April 27, 2016, the parties filed a joint status report stating that all provisions of the agreement had been met. Judge Steele dismissed the case the same day.

Summary Authors

Megan Dolan (5/28/2014)

Nathaniel Flack (1/20/2019)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/13031464/parties/united-states-v-first-united-security-bank/


Judge(s)
Attorney for Plaintiff

Campos, Marta (District of Columbia)

Holder, Eric H. Jr. (District of Columbia)

Attorney for Defendant

Brown, Stephen E (Alabama)

Dulin, John P. Jr. (Alabama)

Glancz, Ronald R. (District of Columbia)

show all people

Documents in the Clearinghouse

Document

1:09-cv-00644

Docket [PACER]

United States of America v. First United Security Bank

April 27, 2016

April 27, 2016

Docket
1

1:09-cv-00644

Complaint

United States of America v. First United Security Bank

Sept. 30, 2009

Sept. 30, 2009

Complaint
5

1:09-cv-00644

Agreed Order for Resolution

United States of America v. First United Security Bank

Nov. 18, 2009

Nov. 18, 2009

Order/Opinion

1:09-cv-00644

Justice Department Reaches Settlement with First United Security Bank of Thomasville, Alabama, Regarding Alleged Discrimination in Lending

United States of America v. First United Security Bank

No Court

Nov. 30, 2009

Nov. 30, 2009

Press Release
10

1:09-cv-00644

Joint Status Report

United States of America v. First United Security Bank

March 28, 2014

March 28, 2014

Findings Letter/Report
12

1:09-cv-00644

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)

May 6, 2014

May 6, 2014

Pleading / Motion / Brief
14

1:09-cv-00644

Amended Agreed Order for Resolution

May 7, 2014

May 7, 2014

Order/Opinion
17

1:09-cv-00644

Joint Status Report

United States of America v. First United Security Bank

April 9, 2015

April 9, 2015

Findings Letter/Report
19

1:09-cv-00644

Joint Status Report

United States of America v. First United Security Bank

Dec. 7, 2015

Dec. 7, 2015

Findings Letter/Report
21

1:09-cv-00644

Joint Status Report

United States of America v. First United Security Bank

April 27, 2016

April 27, 2016

Findings Letter/Report

Docket

See docket on RECAP: https://www.courtlistener.com/docket/13031464/united-states-v-first-united-security-bank/

Last updated March 18, 2024, 3:08 a.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT against First United Security Bank, filed by United States of America. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4) (Moore, Gary) (Additional attachment(s) added on 10/2/2009: # 5 Civil Cover Sheet) (mpp, ). (Entered: 09/30/2009)

Sept. 30, 2009

Sept. 30, 2009

2

Proposed Consent Decree by United States of America and First United Security Bank. (Moore, Gary) (Entered: 09/30/2009)

Sept. 30, 2009

Sept. 30, 2009

3

Order entered, A Notice of Assignment to United States Magistrate Judge for Trial is attached to this Order. If they so desire, the parties are requested to confirm their consent in writing to have the undersigned Magistrate Judge conduct any and all proceedings in this action not later than October 8, 2009. However, only one consent form, signed by counsel for all parties, is to be filed. If written consent is not filed by October 8, 2009, the Clerk is directed to reassign this action to a United States District Judge. Signed by Magistrate Judge Bert W. Milling, Jr on 10/1/09. (Attachments: # 1 Consent Form) (clr) (Entered: 10/01/2009)

Oct. 1, 2009

Oct. 1, 2009

4

This action has been transferred from the docket of Magistrate Judge Bert W. Milling, Jr., and is now assigned to the docket of Judge William H. Steele. To ensure that your pleadings are referred to the proper Judge and Magistrate Judge with as little delay as possible, please use the letter suffix WS−M after the case number on all future pleadings. (clr) (Entered: 10/09/2009)

Oct. 9, 2009

Oct. 9, 2009

Set/Reset Hearings: Telephone Conference set for 11/18/2009 at 10:00 AM in US Courthouse, Judge's Chambers, 113 St. Joseph Street, Mobile, AL 36602 before Judge William H. Steele. (mbp) (Entered: 11/17/2009)

Nov. 17, 2009

Nov. 17, 2009

5

Agreed Order For Resolution entered. The Court shall retain jurisdiction for the duration of this Agreement to enforce the terms of the Agreement, after which time the case shall be dismissed with prejudice.. Signed by Judge William H. Steele on 11/18/09. (tgw) (Entered: 11/18/2009)

Nov. 18, 2009

Nov. 18, 2009

6

Order that because the case is fully resolved by settlement, with only full execution of the settlement delayed, the action should be closed for statistical purposes. The parties are ordered to file and serve notice promptly should the agreement terminate according to its terms or should they seek termination. Should the agreement not be earlier terminated, the parties are ordered to file, by 4/1/2014, a joint status report concerning the projected termination date of the agreement. Signed by Chief Judge William H. Steele on 3/26/2013. (sdb) (Entered: 03/26/2013)

March 26, 2013

March 26, 2013

7

NOTICE by United States of America of Substitution of Counsel (Wiseman, Holly) (Entered: 11/27/2013)

Nov. 27, 2013

Nov. 27, 2013

8

MOTION to Substitute Attorney by First United Security Bank. (Smith, David) (Entered: 02/13/2014)

Feb. 13, 2014

Feb. 13, 2014

9

ENDORSED ORDER GRANTING 8 Motion to Substitute Attorney filed by David M. Smith. Attorney Stephen E. Brown terminated. Signed by Magistrate Judge Bert W. Milling, Jr on 2/13/2014. (clr) (Entered: 02/13/2014)

Feb. 13, 2014

Feb. 13, 2014

11

Order noting the 10 Joint Status Report. The parties are ordered to file and serve notice promptly should the agreement terminate according to its terms or should they seek termination. Should the agreement not be earlier terminated, the parties are ordered to file, by 10/15/2014, a joint status report concerning the projected termination date of the agreement. Signed by Chief Judge William H. Steele on 4/8/2014. (tgw) (Entered: 04/08/2014)

April 8, 2014

April 8, 2014

12

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) (Campos, Marta) (Entered: 05/06/2014)

May 6, 2014

May 6, 2014

13

ENDORSED ORDER granting 12 Joint Motion to Amend Agreed Order. Signed by Chief Judge William H. Steele on 5/7/2014. (Steele, William) (Entered: 05/07/2014)

May 7, 2014

May 7, 2014

14

Amended Agreed Order for Resolution. Signed by Chief Judge William H. Steele on 5/7/2014. (jlr) (Entered: 05/09/2014)

May 7, 2014

May 7, 2014

15

STATUS REPORT Joint by United States of America. (Campos, Marta) (Entered: 09/26/2014)

Sept. 26, 2014

Sept. 26, 2014

REFERRAL OF 15 Status Report to Judge Steele. (tgw) (Entered: 09/26/2014)

Sept. 26, 2014

Sept. 26, 2014

16

Order noting the 15 Status Report. The parties are ordered to file and serve notice promptly should the agreement terminate according to its terms or should they seek termination. Should the agreement not be earlier terminated, the parties are ordered to file, by April 15, 2015, a joint status report concerning the projected termination date of the agreement. Signed by Chief Judge William H. Steele on 9/29/2014. (tgw) (Entered: 09/29/2014)

Sept. 29, 2014

Sept. 29, 2014

17

STATUS REPORT Joint by United States of America. (Campos, Marta) (Entered: 04/09/2015)

April 9, 2015

April 9, 2015

REFERRAL OF 17 Status Report to Judge Steele. (sdb) (Entered: 04/09/2015)

April 9, 2015

April 9, 2015

18

Order re: 17 Status Report filed by United States of America is noted. Should the agreement not be earlier terminated, the parties are to file a Status Report by 12/15/15. Signed by Chief Judge William H. Steele on 4/13/2015. (mbp) (Entered: 04/13/2015)

April 13, 2015

April 13, 2015

19

Status Report

Dec. 7, 2015

Dec. 7, 2015

PACER
19

Status Report

Dec. 7, 2015

Dec. 7, 2015

PACER
19

Status Report

Dec. 7, 2015

Dec. 7, 2015

PACER
19

Status Report

Dec. 7, 2015

Dec. 7, 2015

PACER
19

Status Report

Dec. 7, 2015

Dec. 7, 2015

PACER
19

Status Report

Dec. 7, 2015

Dec. 7, 2015

PACER
19

Status Report

Dec. 7, 2015

Dec. 7, 2015

PACER

Document Referred

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Dec. 8, 2015

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Document Referred

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Dec. 8, 2015

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Document Referred

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Document Referred

Dec. 8, 2015

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20

~Util - Set Deadlines AND Order

Dec. 16, 2015

Dec. 16, 2015

PACER
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~Util - Set Deadlines AND Order

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Dec. 16, 2015

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~Util - Set Deadlines AND Order

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~Util - Set Deadlines AND Order

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~Util - Set Deadlines AND Order

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~Util - Set Deadlines AND Order

Dec. 16, 2015

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~Util - Set Deadlines AND Order

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Status

April 27, 2016

April 27, 2016

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Status

April 27, 2016

April 27, 2016

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Status

April 27, 2016

April 27, 2016

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Status

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Status

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Status

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Status

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Document Referred

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Order

April 28, 2016

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Order

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Case Details

State / Territory: Alabama

Case Type(s):

Fair Housing/Lending/Insurance

Special Collection(s):

Multi-LexSum (in sample)

Key Dates

Filing Date: Sept. 30, 2009

Closing Date: 2016

Case Ongoing: No

Plaintiffs

Plaintiff Description:

The United States Department of Justice, vindicating the rights of African-American loan applicants.

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

First United Security Bank (Clarke), Private Entity/Person

Defendant Type(s):

Bank or credit provider

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:

Trial Court Docket

Complaint (any)

Injunctive (or Injunctive-like) Relief

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: 610,000

Order Duration: 2009 - 2016

Content of Injunction:

Hire

Discrimination Prohibition

Develop anti-discrimination policy

Comply with advertising/recruiting requirements

Provide antidiscrimination training

Reporting

Recordkeeping

Issues

General:

Funding

Housing

Pattern or Practice

Predatory lending

Discrimination-area:

Disparate Treatment

Housing Sales/Rental

Lending

Discrimination-basis:

Race discrimination

Race:

Black