Articles Posted in US Court of Appeals for the Fifth Circuit

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Plaintiffs filed suit against the condo owners association after the foreclosure sale of their condo unit, alleging common law claims for breach of contract, wrongful foreclosure, negligent misrepresentation, and breach of fiduciary duty, as well as violations of the Federal Debt Collection Practices Act (FDCPA), Texas Fair Debt Collection Practices Act (TFDCPA), and Texas Deceptive Trade Practices Act (TDTPA). The Fifth Circuit affirmed the district court's grant of summary judgment on all claims, holding that regardless whether the district court abused its discretion, any evidentiary error the district court made was harmless. In this case, the issue whether the late fee increase was properly adopted by the Association was not dispositive of any claims, so it did not affect the outcome of the litigation and did not affect their substantial rights. The court also held that plaintiffs' could not maintain their suit for breaches of the Condominium Declaration when they have themselves been in default of the contract; there was no authority supporting plaintiffs' conclusion that an inaccurate balance included in a default notice constitutes a defect in the foreclosure proceedings; and plaintiffs failed to cite specific negligent misrepresentations by defendants. The court rejected plaintiffs' remaining claims. View "Mahmoud v. De Moss Owners Association, Inc." on Justia Law

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The Fifth Circuit affirmed the district court's grant of summary judgment to plaintiff on grounds that ARS, a consumer debt-collection agency, violated section 807(8) of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692e(8). The court held that the district court did not violate Fed. R. Civ. P. 56(f) where the district court gave the parties adequate notice of, and a reasonable time to respond to, its intention to consider summary judgment; even assuming arguendo that the district court erred, the error was harmless; and ARS's failure to communicate to credit bureaus that plaintiff disputed his debts violated section 807(8) of the FDCPA. Finally, the district court did not err when it found that plaintiff satisfied the elements of Article III standing. View "Sayles v. Advanced Recovery Systems, Inc." on Justia Law