You are about to read the short story of Ms. Dolores Zirbser and Mr. Bruce Jon Spalla. Maybe it's not so short a story here at that. Their story will be continued in a concluding article that will be posted here on Thursday, August 20, 2020.
You can read more about them in 2 Dennis J. Wall, LITIGATION AND PREVENTION OF INSURER BAD FAITH § 9:35, titled "Force-Placed Insurance: The Most Frequently Alleged Claims and Causes of Action, Including Alleged Bad Faith" (3d Edition Thomson Reuters 2020 Supplements).
(©Dennis J. Wall. All Rights Reserved.)
Ms. Zirbser and Mr. Spalia took out a home equity line of credit or HELOC. They made their loan agreement when they took out their loan with Wachovia Bank.
In the way of modern mortgages, Wachovia sold the loan to Wells Fargo.
Zirbser and Spalla sued Wells Fargo for allegedly over billing them for allegedly "erroneous fees" and taking other payments that were not authorized by the loan contract. In case anyone thinks that force-placed insurance premiums are a thing of the past, specifically a creature unique to the Great Recession in 2008-2009, their lawsuit was filed in December, 2018.
Wells successfully argued for dismissal of five of the six counts of the complaint on the basis of the statute of limitations, i.e., that the allegedly "illegal charges" were time-barred because they took place too long ago to sue on now.
Except for three charges that were within the time to sue on them. The federal judge denied Wells's motion to dismiss the last remaining count for alleged breach of the implied covenant of good faith and fair dealing under New Jersey law.
TO BE CONTINUED ....
Please read the disclaimer. This blog article ©2020 Dennis J. Wall. All rights reserved.
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