BofA, Wells Fargo Seek Stay of Los Angeles Loan Bias Appeals

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By Chris Bruce

Oct. 28 — Bank of America and Wells Fargo Oct. 27 asked the U.S. Court of Appeals for the Ninth Circuit to freeze an appeal by Los Angeles in two cases alleging loan bias, saying upcoming U.S. Supreme Court action in a separate case could resolve the Los Angeles dispute as well ( Los Angeles v. Bank of Am., 9th Cir., No. 15-cv-55897, motion for stay 10/27/16 ).

Los Angeles has appealed separate but related district court rulings in favor of Bank of America and Wells Fargo. In each case, Los Angeles alleged violations of the Fair Housing Act, saying discriminatory lending spurred foreclosures that hurt the city’s economy. Both appeals are now before the Ninth Circuit.

The Supreme Court is scheduled Nov. 8 to hear arguments in an appeal brought by Bank of America and Wells Fargo from a 2015 ruling by the Eleventh Circuit that reinstated similar Fair Housing Act claims by the city of Miami (172 BBD, 9/6/16).

In their Oct. 27 filing, Bank of America and Wells Fargo asked the Ninth Circuit to stay the Los Angeles appeals, saying the Supreme Court case “may be fully dispositive of Los Angeles’s claims.”

A host of other cities and local governments have filed similar lawsuits against banks.

Most of those cases have already been stayed to await the outcome of the Supreme Court case (136 BBD, 7/15/16).

To contact the reporter on this story: Chris Bruce in Washington at cbruce@bna.com

To contact the editor responsible for this story: Mike Ferullo at mferullo@bna.com

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