City of Miami v. Wells Fargo/Bank of America

Posted: March 1, 2017 by beguide in case summaries, Civil Procedure, Fantasy Supreme Court League, Money Money!, Standing, Uncategorized, White Skull


WHAT HAPPENED:  Appellant is a pastel-clad, humid municipality populated by hot women and Pitbull (or so I’m told). Appellee is a commercial full of less-aggressively good-looking suburbanites in their late twenties who are far too relaxed and self-aggrandizing during the process of buying a house (I watch too much TV).  The basis of Appellant’s claim is that Appellee caused gave predatory loans (OK) to minority homeowners (probably true) which caused the housing crisis (wait, what) and ruined Miami (arguable).

WHY IS THIS BEFORE THE SUPREME COURT:  Even if we assume that all of the propositions in that last sentence are true, there are three big technical issues Appellant has to get by to bring this claim.  First, the Court has to determine whether or not Miami has standing to bring this claim under the Fair Housing Act, because even though Miami asserts elements of racial discrimination, it is not quite the focus of the claim like other lawsuits under the Fair Housing Act.  Second, the Court has to determine whether or not proximate cause is proven, meaning whether or not a bank giving bad loans could somehow be traced to the complete collapse of the housing market.  Third, the Court has to determine whether or not Miami can prove damages that are not just “infinity dollars”.

WHAT ARE THE RAMIFICATIONS –  By way of background, wild cases like this are not entirely uncommon in the legal profession.  Whether it is by the government or private parties, creative lawsuits can often move the law forward and bring about institutional or social change that the Court is commonly known for.  For example, Roe v. Wade was a fairly wild shot in the dark when it happened, and that is probably the most famous case of the last century.  That being said (and this gets forgotten about often), most of these cases lose.  This is a rough comparison, but the success of these cases are probably at the same rate of being on American Idol, where some contestants have perfect pitch and look like Carrie Underwood, and others are tone-deaf weirdos who somehow did not have a friend throw their body in front of the idea of auditioning in front of a live televised audience.  Following this analogy to its naturally ridiculous conclusion, this is the kind of case where Randy Jackson would say “Gee, I don’t know, dog.  I just don’t’ think it’s your time”, and then the lawsuit sadly goes back to the lobby and has to tell its disappointed family members that no, we are not going to Hollywood.

ROOT FOR CITY OF MIAMI IF:  you’re down with creditors getting taken down a peg, even if the implications of said peg are completely unknown.

ROOT FOR WELLS FARGO IF:  you didn’t own a house in the late 2000s.

PREDICTION:  Wells Fargo 6-2

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