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Month: April, 2019

Early Sullivan Prevails for Client Sun West in 11th Circuit Affirmation

Scott Gizer successfully prevailed in Iaffaldano v. Sun West Mortgage Company, Inc. after the United States Court of Appeals for the Eleventh Circuit affirmed a judgment by the District Court for the Southern District of Florida finding that Early Sullivan client, Sun West Mortgage Company, Inc., had not violated RESPA when it procured force placed flood insurance for its borrower Michelle Iaffaldano.

Iaffaldano had argued that Sun West had established an escrow account for her when it created a Repayment Plan pursuant to which Iaffaldano was to reimburse Sun West for the fees advanced for the force placed insurance. Iaffaldano further argued that establishing an escrow account precluded Sun West from obtaining force placed insurance and, instead, required Sun West to renew Iaffaldano’s voluntary insurance. The District Court disagreed that the Repayment Plan established an escrow account and found Sun West’s conduct to be proper and in compliance with RESPA.

The 11th Circuit affirmed finding that the District Court had been correct in its judgment that the plaintiff did not have an escrow account (as defined in 12 C.F.R. § 1024.17(b)) with Sun West, and was therefore not entitled to protections from force-placed insurance afforded under § 1024.17(k)(5).

Early Sullivan Prevails in the Second Appellate District of California

Scott Gizer, Diane Luczon, and Zachary Gidding successfully prevailed in Charles Johnson v. Sun West Mortgage Company Inc. et al. The Court of Appeal affirmed the lower court’s ruling on Early Sullivan’s motion for summary judgment in favor of Sun West Mortgage Company, finding that the trial court properly excluded an expert witness declaration in its entirety when granting the motion and finding that Sun West had no liability to Plaintiff. This was a putative class action matter wherein the Plaintiff asserted that Early Sullivan client, Sun West Mortgage Company, had engaged in an illegal kickback scheme with its insurance broker whereby Sun West received below market services in exchange for securing a commission for the broker from the Sun West’s forced placed flood insurer.

The Court of Appeal examined the expert declaration and report, and found that the trial court properly exercised its discretion in granting Sun West’s objection to exclude the witness’s declaration, which had been the basis for arguments that the defendants supposedly had “vastly” overcharged the plaintiff and others for forced placed insurance. In examining the subject declaration, the trial court found it to be “unreliable,” with some parts “simply arbitrary, unverifiable, and unfalsifiable.” The Court of Appeal further affirmed the trial court’s decision that Sun West had not engaged in any improper conduct.

Click “Download PDF” to read the full decision.

Bryan Sullivan Quoted in Newsweek on Leaked Photo of Jay-Z and Beyonce’s Children

Bryan Sullivan was recently asked by Newsweek to comment on the possible legal consequences of sharing photos of celebrity children without permission. According to Bryan, even though the private photo of Jay-Z and Beyonce’s children was quickly taken down by the gossip blog that initially posted it, the couple could still file a lawsuit for invasion of privacy and seek damages for emotional distress.

To read the full article, click here.

Early Sullivan Knocks Out Entire Case on Demurrer

In Pak v. First American Title Insurance Company, Los Angeles Superior Court Case No. 18STCV04840, William Wright obtained a judgment of dismissal for the Firm’s client, First American Title Insurance Company. The case concerned claims for breach of title policy and bad faith relating to a commercial property in Los Angeles. The Court sustained First American’s demurrers without leave to amend, agreeing with Mr. Wright that First American had no duty of defense or indemnification in light of the individual plaintiffs’ prior conveyance of the property to their LLC, which conveyance terminated coverage as a matter of law pursuant to Condition 2 of the policy.

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