Case: City of Miami v. Bank of America Corp.

1:13-cv-24506 | U.S. District Court for the Southern District of Florida

Filed Date: Dec. 13, 2013

Closed Date: March 2, 2020

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Case Summary

On December 13, 2013, the City of Miami filed this lawsuit in the United States District Court for the Southern District of Florida, suing Bank of America and Countrywide Financial, under the Fair Housing Act of 1968 (FHA). Represented by the Miami City Attorney’s Office and private counsel, the city sought injunctive relief and damages for discriminatory lending practices. Specifically, it claimed that the banks had engaged in redlining and reverse redlining, both of which led to a disproporti…

The case was initially assigned to Judge Joan A. Lenard. Upon her recusal, it was assigned to Judge Robin S. Rosenbaum, then later reassigned to Judge William P. Dimitrouleas.

On July 8, 2014, the court granted the banks’ motion to dismiss, finding that the city lacked standing to sue under the FHA because its alleged economic injuries were not “affected by a racial interest.” 2014 WL 3362348. In addition, the court held that the city had not alleged facts identifying the banks’ practices as the cause of the alleged disparity, and held that the statute of limitations had expired. The city filed a motion for reconsideration and for leave to file an amended complaint on July 21, 2014, which the court denied on September 8, 2014.

The city then appealed to the Eleventh Circuit on October 7, 2014. On May 12, 2015, that court consolidated the appeal with City of Miami v. Wells Fargo & Co. (for purposes of oral argument only). On September 1, 2015 the court (Judges Stanley Marcus, Charles Wilson, and Harvey Schlesinger) affirmed the district court’s dismissal of an unjust enrichment claim under Florida law, but reversed the decision to dismiss the FHA claims, holding that the city actually had standing to bring the FHA claims and that the district court had erred in its causation analysis. 800 F.3d 1262.

The banks appealed the Eleventh Circuit’s ruling to the United States Supreme Court, and the district court on July 13, 2016 granted an order staying proceedings while the appeal was pending. The Supreme Court heard oral arguments on November 8, 2016 and ruled on June 2, 2017. 137 S. Ct. 1296. It held that the city had standing to sue under the FHA. However, the Eleventh Circuit had erred in finding that the city met the FHA’s proximate-cause requirement simply because the city’s injury was foreseeable. The Supreme Court, requiring “some direct relation between the injury asserted and the injurious conduct alleged,” instructed the Eleventh Circuit to analyze more closely how directly the banks’ actions had harmed the city. Only if the Eleventh Circuit found a sufficiently direct relation could it allow the city to sue under the FHA.

While the appeal was pending before the Supreme Court, the city had filed a second amended complaint (providing facts showing that the violation was within the statute of limitations), the district court had again denied the city’s claims (171 F.Supp.3d 1314), and the city had filed a third amended complaint.

On remand from the Supreme Court, Judge Stanley Marcus of the Eleventh Circuit directed the parties to file briefs as to the meaning of proximate cause under the FHA. On April 30, 2018, both parties submitted their supplemental briefs. In addition, the Court of Appeals granted leave for several amici to file briefs addressing these issues on May 30, 2018.

Nearly a year later, on May 3, 2019, the Eleventh Circuit issued a ruling as instructed by the Supreme Court. The court set about to “endeavor carefully to apply the Court’s mandate to these complaints, to determine if they plausibly state a claim under the Fair Housing Act.” The court found that there was indeed “some direct relation” between the banks’ violations of the FHA and the city’s tax revenue loss, even though there were other causal steps involved. “The Supreme Court has never held that the presence of an intervening causal step or the involvement of a third party necessarily bars a finding of proximate cause as a matter of law, and we decline to establish so hard and fast a rule.” It explained that bad loans “in the aggregate will mean foreclosures in the aggregate, which will mean loss of property value and a reduction in the tax base.” The Eleventh Circuit sent the case back to the district court for further proceedings.

On May 24, 2019, the banks filed a petition for a rehearing before the entire Eleventh Circuit. The petition was denied on August 26, 2019. On December 9, 2019, the district court re-opened the case, directed the city to file an updated version of its complaint, and set a jury trial for February 15, 2021.

On January 29, 2020, the city abruptly dismissed all of its claims against the banks, and the district court dismissed the case the next day. Although the city never provided any explanation for its decision, Wells Fargo announced that the “dismissal was initiated by the city and is not related to a settlement, and Wells Fargo is providing nothing in exchange.” In light of the dismissal of the case, the Supreme Court vacated the Eleventh Circuit’s May 3, 2019 ruling.

	Document
1:13-cv-24506	Docket [PACER] City of Miami v. Bank of America	Sept. 9, 2016	Sept. 9, 2016 Docket
1 1:13-cv-24506	Complaint City of Miami v. Bank of America	Dec. 13, 2013	Dec. 13, 2013 Complaint
71 1:13-cv-24506	Order Granting Motion to Dismiss City of Miami v. Bank of America	July 8, 2014	July 8, 2014 Order/Opinion 2014 WL 2014
76 1:13-cv-24506	Order Denying Motion for Reconsideration City of Miami v. Bank of America	Sept. 8, 2014	Sept. 8, 2014 Order/Opinion 2014 WL 2014
77 1:13-cv-24506	Final Order of Dismissal City of Miami v. Bank of America	Sept. 16, 2014	Sept. 16, 2014 Order/Opinion
82 1:13-cv-24506	Court of Appeals Order to Remand Further Proceedings City of Miami v. Bank of America U.S. Court of Appeals for the Eleventh Circuit	Sept. 1, 2015	Sept. 1, 2015 Order/Opinion 800 F.3d 800
98 1:13-cv-24506	Order Dismissing Second Amended Complaint City of Miami v. Bank of America	March 17, 2016	March 17, 2016 Order/Opinion 171 F.Supp.3d 171
102 1:13-cv-24506	Third Amended Complain City of Miami v. Bank of America	April 29, 2016	April 29, 2016 Complaint 2016 WL 2016
1:13-cv-24506	Supreme Court Opinion Bank of America v. City of Miami Supreme Court of the United States	May 1, 2017	May 1, 2017 Order/Opinion 137 S.Ct. 137

ECF Number	Description	Date	Link Date / Link
2	Judge Assignment to Judge Joan A. Lenard (jua) (Entered: 12/13/2013)	Dec. 13, 2013	Dec. 13, 2013 PACER
1	COMPLAINT City of Miami against All Defendants. Filing fees $ 400.00 receipt number 113C-6310671, filed by City of Miami. (Attachments: # 1 Civil Cover Sheet)(Harke, Lance) (Entered: 12/13/2013) 1 Civil Cover Sheet View on PACER	Dec. 13, 2013	Dec. 13, 2013 Clearinghouse
4	Notice of Pendency of Other Action by City of Miami (Harke, Lance) (Entered: 12/17/2013)	Dec. 17, 2013	Dec. 17, 2013 PACER
3	ORDER OF RECUSAL. Judge Joan A. Lenard recused. Case reassigned to Judge Robin S. Rosenbaum for all further proceedings Signed by Judge Joan A. Lenard on 12/17/2013. (jc) (Entered: 12/17/2013)	Dec. 17, 2013	Dec. 17, 2013 PACER
5	WAIVER OF SERVICE Returned Executed by City of Miami. Bank of America Corporation waiver sent on 12/16/2013, answer due 2/14/2014; Bank of America, N.A. waiver sent on 12/16/2013, answer due 2/14/2014; Countrywide Bank, FSB waiver sent on 12/16/2013, answer due 2/14/2014; Countrywide Financial Corporation waiver sent on 12/16/2013, answer due 2/14/2014; Countrywide Home Loans waiver sent on 12/16/2013, answer due 2/14/2014. (Harke, Lance) (Entered: 12/18/2013)	Dec. 18, 2013	Dec. 18, 2013 PACER
12	MOTION to Appear Pro Hac Vice for Robert Peck, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 71217. (pt) (Entered: 01/06/2014)	Dec. 31, 2013	Dec. 31, 2013 PACER
11	MOTION to Appear Pro Hac Vice for Erwin Chemerinsky, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 71218. (pt) (Entered: 01/06/2014)	Dec. 31, 2013	Dec. 31, 2013 PACER
10	MOTION to Appear Pro Hac Vice for Joel Liberson, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 71219. (pt) (Entered: 01/06/2014)	Dec. 31, 2013	Dec. 31, 2013 PACER
9	MOTION to Appear Pro Hac Vice for Howard Liberson, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 71220. (pt) (Entered: 01/06/2014)	Dec. 31, 2013	Dec. 31, 2013 PACER
8	MOTION to Appear Pro Hac Vice for Steve W. Berman, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 71221. (pt) (Entered: 01/06/2014)	Dec. 31, 2013	Dec. 31, 2013 PACER
7	MOTION to Appear Pro Hac Vice for Lee M. Gordon, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 71222. (pt) (Entered: 01/06/2014)	Dec. 31, 2013	Dec. 31, 2013 PACER
6	MOTION to Appear Pro Hac Vice for Elaine T. Byszewski, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 71223. (pt) (Entered: 01/06/2014)	Dec. 31, 2013	Dec. 31, 2013 PACER
19	ORDER granting 12 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 1/6/2014. (tpl) (Entered: 01/06/2014)	Jan. 6, 2014	Jan. 6, 2014 PACER
18	ORDER granting 9 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 1/6/2014. (tpl) (Entered: 01/06/2014)	Jan. 6, 2014	Jan. 6, 2014 PACER
17	ORDER granting 10 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 1/6/2014. (tpl) (Entered: 01/06/2014)	Jan. 6, 2014	Jan. 6, 2014 PACER
16	ORDER granting 7 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 1/6/2014. (tpl) (Entered: 01/06/2014)	Jan. 6, 2014	Jan. 6, 2014 PACER
15	ORDER granting 11 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 1/6/2014. (tpl) (Entered: 01/06/2014)	Jan. 6, 2014	Jan. 6, 2014 PACER
14	ORDER granting 6 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 1/6/2014. (tpl) (Entered: 01/06/2014)	Jan. 6, 2014	Jan. 6, 2014 PACER
13	ORDER granting 8 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 1/6/2014. (tpl) (Entered: 01/06/2014)	Jan. 6, 2014	Jan. 6, 2014 PACER
22	Unopposed MOTION for Extension of Time to File Answer RE: Complaints re 1 Complaint - Defendants' Unopposed Motion for Enlargement of Time to Respond to Complaint by Bank of America Corporation, Bank of America, N.A., Countrywide Bank, FSB, Countrywide Financial Corporation, Countrywide Home Loans. (Attachments: # 1 Exhibit A - [proposed] Order Granting Defendants' Unopposed Motion for Enlargement of Time to Respond to Complaint)(Carver, Christopher) (Entered: 02/06/2014) 1 Exhibit A - [proposed] Order Granting Defendants' Unopposed Motion for Enla View on PACER	Feb. 6, 2014	Feb. 6, 2014 PACER
21	Corporate Disclosure Statement by Bank of America Corporation, Bank of America, N.A., Countrywide Bank, FSB, Countrywide Financial Corporation, Countrywide Home Loans (Carver, Christopher) (Entered: 02/06/2014)	Feb. 6, 2014	Feb. 6, 2014 PACER
20	NOTICE of Attorney Appearance by Christopher Stephen Carver on behalf of Bank of America Corporation, Bank of America, N.A., Countrywide Bank, FSB, Countrywide Financial Corporation, Countrywide Home Loans. Attorney Christopher Stephen Carver added to party Bank of America Corporation(pty:dft), Attorney Christopher Stephen Carver added to party Bank of America, N.A.(pty:dft), Attorney Christopher Stephen Carver added to party Countrywide Bank, FSB(pty:dft), Attorney Christopher Stephen Carver added to party Countrywide Financial Corporation(pty:dft), Attorney Christopher Stephen Carver added to party Countrywide Home Loans(pty:dft). (Carver, Christopher) (Entered: 02/06/2014)	Feb. 6, 2014	Feb. 6, 2014 PACER
25	GENERAL ORDER ON DISCOVERY. Signed by Magistrate Judge Patrick M. Hunt on 2/7/2014. (tjs) (Entered: 02/07/2014)	Feb. 7, 2014	Feb. 7, 2014 PACER
24	PAPERLESS ORDER granting 22 Defendants' Unopposed Motion for Extension of Time to Respond to the Complaint. Defendants' response to the Complaint is now due 2/28/14. Signed by Judge Robin S. Rosenbaum on 2/7/2014. (kms) (Entered: 02/07/2014)	Feb. 7, 2014	Feb. 7, 2014 PACER
23	ORDER REQUIRING DISCOVERY AND SCHEDULING CONFERENCE AND ORDER REFERRING CASE to Magistrate Judge Patrick M. Hunt for Discovery Matters. Please see Order for details. Signed by Judge Robin S. Rosenbaum on 2/7/2014. (kms) (Entered: 02/07/2014)	Feb. 7, 2014	Feb. 7, 2014 PACER
27	PAPERLESS ORDER granting 26 Defendants' Unopposed Motion for Leave to File Excess Pages. Defendants may file a motion to dismiss that is 23 pages in length; Plaintiff may file a response to the motion that is 23 pages in length; and Defendants may file a 14-page reply brief. Signed by Judge Robin S. Rosenbaum on 2/25/2014. (kms) (Entered: 02/25/2014)	Feb. 25, 2014	Feb. 25, 2014 PACER
26	MOTION for Leave to File Excess Pages Unopposed Motion for Enlargement of Page Limits by Bank of America Corporation, Bank of America, N.A., Countrywide Bank, FSB, Countrywide Financial Corporation, Countrywide Home Loans. Attorney Brendan I Herbert added to party Bank of America Corporation(pty:dft), Attorney Brendan I Herbert added to party Bank of America, N.A.(pty:dft), Attorney Brendan I Herbert added to party Countrywide Bank, FSB(pty:dft), Attorney Brendan I Herbert added to party Countrywide Financial Corporation(pty:dft), Attorney Brendan I Herbert added to party Countrywide Home Loans(pty:dft). (Attachments: # 1 Text of Proposed Order)(Herbert, Brendan) (Entered: 02/25/2014) 1 Text of Proposed Order View on PACER	Feb. 25, 2014	Feb. 25, 2014 PACER
28	MOTION to Permit James W. McGarry to Appear Pro Hac Vice for Defendants, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 74652. (ksa) (Entered: 02/27/2014)	Feb. 26, 2014	Feb. 26, 2014 PACER
30	STRICKEN Unopposed MOTION for Leave to File -- Defendants' Unopposed Motion for Leave to File Declaration of Katherine Cacho under Seal by Bank of America Corporation, Bank of America, N.A., Countrywide Bank, FSB, Countrywide Financial Corporation, Countrywide Home Loans. (Attachments: # 1 Text of Proposed Order Exhibit A - (proposed) Order Granting Motion to File Declaration of Katherine Cacho Under Seal)(Carver, Christopher) Modified to strike per DE 32 on 3/3/2014 (tpl). (Entered: 02/27/2014) 1 Text of Proposed Order Exhibit A - (proposed) Order Granting Motion to File Decl View on PACER	Feb. 27, 2014	Feb. 27, 2014 PACER
29	ORDER granting 28 Motion to Appear Pro Hac Vice, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Signed by Judge Robin S. Rosenbaum on 2/27/2014. (kms) (Entered: 02/27/2014)	Feb. 27, 2014	Feb. 27, 2014 PACER
34	UNOPPOSED MOTION for Leave to File Declaration of Katherine Cacho Under Seal by Bank of America Corporation, et al. (Attachments: # 1 Text of Proposed Order)(nc) (Entered: 03/03/2014) 1 Text of Proposed Order View on PACER	Feb. 28, 2014	Feb. 28, 2014 PACER
33	MOTION to Dismiss for Lack of Jurisdiction 1 Complaint, MOTION TO DISMISS 1 Complaint FOR FAILURE TO STATE A CLAIM -- Defendants Motion to Dismiss Complaint Pursuant to Fed. R. Civ. P. 12(b)(1) and 12(b)(6) and Supporting Memorandum of Law ( Responses due by 3/17/2014) by Bank of America Corporation, Bank of America, N.A., Countrywide Bank, FSB, Countrywide Financial Corporation, Countrywide Home Loans. (Attachments: # 1 Exhibit 1 - Complaint, United States v. Countrywide Fin. Corp., No. 11-10540 (C.D. Cal. Dec. 21, 2011), # 2 Exhibit 2 - Sealed Declaration of Katherine Cacho, # 3 Exhibit 3 - Report of Timothy J.Riddiough, Ph.D, # 4 Exhibit 4 - Report of Marsha J. Courchane, # 5 Exhibit 5 - City of Miami Meeting Minutes (May 14, 2009), # 6 Exhibit 6 - Complaint, City of Miami v. Citigroup, Inc., No. 13-24510 (S.D. Fla.), # 7 Exhibit 7 - Complaint, City of Miami v. Wells Fargo & Co., No. 13-cv-24508 (S.D. Fla.), # 8 Exhibit 8 - Map showling locations of properties identified in Citi of Miami lawsuits, # 9 Exhibit 9 - City of Miami FY 2009 Annual Budget (excerpts), # 10 Exhibit 10 - City of Miami Legislation Resolution, File No. 09-00492 (May 5, 2009))(Carver, Christopher) (Attachment 2 replaced on 3/5/2014) (nc). Modified docket text on 3/5/2014 (nc). (Entered: 02/28/2014) 1 Exhibit 1 - Complaint, United States v. Countrywide Fin. Corp., No. 11-10540 (C. View on PACER 3 Exhibit 3 - Report of Timothy J.Riddiough, Ph.D View on PACER 4 Exhibit 4 - Report of Marsha J. Courchane View on PACER 5 Exhibit 5 - City of Miami Meeting Minutes (May 14, 2009) View on PACER 6 Exhibit 6 - Complaint, City of Miami v. Citigroup, Inc., No. 13-24510 (S.D. Fla. View on PACER 7 Exhibit 7 - Complaint, City of Miami v. Wells Fargo & Co., No. 13-cv-24508 (S.D. View on PACER 8 Exhibit 8 - Map showling locations of properties identified in Citi of Miami law View on PACER 9 Exhibit 9 - City of Miami FY 2009 Annual Budget (excerpts) View on PACER 10 Exhibit 10 - City of Miami Legislation Resolution, File No. 09-00492 (May 5, 200 View on PACER	Feb. 28, 2014	Feb. 28, 2014 PACER
32	NOTICE of Striking 30 Unopposed MOTION for Leave to File -- Defendants' Unopposed Motion for Leave to File Declaration of Katherine Cacho under Seal filed by Countrywide Home Loans, Bank of America Corporation, Countrywide Bank, FSB, Countrywide Financial Corporation, Bank of America, N.A. by Countrywide Bank, FSB, Countrywide Financial Corporation, Bank of America, N.A., Bank of America Corporation, Countrywide Home Loans (Herbert, Brendan) (Entered: 02/28/2014)	Feb. 28, 2014	Feb. 28, 2014 PACER
31	Clerks Notice to Filer re 30 Unopposed MOTION for Leave to File -- Defendants' Unopposed Motion for Leave to File Declaration of Katherine Cacho under Seal. Conventional Filing Filed Electronically; CORRECTIVE ACTION REQUIRED - The Filer failed to submit the document in the conventional paper format. The Filer must file a Notice of Striking, then refile the document in the conventional paper format. (tpl) (Entered: 02/28/2014)	Feb. 28, 2014	Feb. 28, 2014 PACER
36	CLERK'S NOTICE of Compliance by Replacing [33-2] with Sealed Declaration of Katherine Cacho and the attached exhibits pursuant to 35 Order. (nc) (Entered: 03/05/2014)	March 5, 2014	March 5, 2014 PACER
35	ORDER granting 34 Motion to File Documents Under Seal. Filings are to remain sealed until one year after the closing of the case. Signed by Judge Robin S. Rosenbaum on 3/5/2014. (tpl) (Entered: 03/05/2014)	March 5, 2014	March 5, 2014 PACER
38	AFFIDAVIT in Opposition re 33 MOTION to Dismiss for Lack of Jurisdiction 1 Complaint MOTION TO DISMISS 1 Complaint FOR FAILURE TO STATE A CLAIM -- Defendants Motion to Dismiss Complaint Pursuant to Fed. R. Civ. P. 12(b)(1) and 12(b)(6) and Supporting Memorandum of Law Declaration of Elaine T. Byszewski in Support of Plaintiff's Opposition to Defendants' Motion to Dismiss filed by City of Miami. (Attachments: # 1 Exhibit Exhibit A to Declaration of Elaine T. Byszewski in Support of Plaintiff's Opposition to Defendants' Motion to Dismiss)(Harke, Lance) (Entered: 03/17/2014) 1 Exhibit Exhibit A to Declaration of Elaine T. Byszewski in Support of Plaintiff& View on PACER	March 17, 2014	March 17, 2014 PACER
37	RESPONSE in Opposition re 33 MOTION to Dismiss for Lack of Jurisdiction 1 Complaint MOTION TO DISMISS 1 Complaint FOR FAILURE TO STATE A CLAIM -- Defendants Motion to Dismiss Complaint Pursuant to Fed. R. Civ. P. 12(b)(1) and 12(b)(6) and Supporting Memorandum of Law PLAINTIFF'S OPPOSITION TO DEFENDANTS' MOTION TO DISMISS filed by City of Miami. (Attachments: # 1 Declaration of Elaine T. Byszewski in Support of Plaintiff's Opposition to Defendants' Motion to Dismiss)(Harke, Lance) (Entered: 03/17/2014) 1 Declaration of Elaine T. Byszewski in Support of Plaintiff's Opposition to View on PACER	March 17, 2014	March 17, 2014 PACER
39	MOTION to Permit Matthew S. Sheldon Appear Pro Hac Vice, for Defendants, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 75870. (pt) (Entered: 03/24/2014)	March 20, 2014	March 20, 2014 PACER
42	MOTION to Permit Thomas M. Hefferon to Appear Pro Hac Vice for Defendants, Consent to Designation, and Request to Electronically Receive Notices of Electronic Filing. Filing Fee $ 75.00. Receipt # 76077. (ksa) (Entered: 03/28/2014)	March 25, 2014	March 25, 2014 PACER

Case: City of Miami v. Bank of America Corp.

1:13-cv-24506 | U.S. District Court for the Southern District of Florida

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