Bank of America Corp. v. City of Miami; Wells Fargo & Co. v. City of Miami

U.S. Supreme Court

Question(s) Presented

Bank of America Corp. v. City of Miami:

1. By limiting suit to “aggrieved person[s],” did Congress require that an FHA plaintiff plead more than just Article III injury-in-fact?

2. The FHA requires plaintiffs to plead proximate cause. Does proximate cause require more than just the possibility that a defendant could have foreseen that the remote plaintiff might ultimately lose money through some theoretical chain of contingencies?

Wells Fargo & Co. v. City of Miami:

1. Whether the term “aggrieved” in the Fair Housing Act imposes a zone-of-interests requirement more stringent than the injury-in-fact requirement of Article III.

2. Whether the City is an “aggrieved person” under the Fair Housing Act.

Tab Group

Merits Stage

Outcome

May 1, 2017

The Supreme Court held that the City of Miami may sue Bank of America and Wells Fargo under the Fair Housing Act (“FHA”) for foreclosures that allegedly caused blight and lost property tax revenue, but agreed with the banks that the lower courts applied the wrong causation standard, and vacated the Eleventh Circuit’s decision and remanded for further proceedings.

U.S. Chamber urges Supreme Court to reverse Eleventh Circuit decision in Fair Housing Act case

August 29, 2016

After certiorari was granted, the Chamber and Property Casualty Insurers Association of America filed an amicus brief on the merits, urging the Supreme Court to reverse the Eleventh Circuit's decision. The brief argues that the Circuit decision contravenes the Court’s precedent and exposes lending institutions to virtually boundless liability, causing broad and dire policy implications for financial institutions, residential lending, and the national economy.

H. Rodgin Cohen, John J. Liolos, Brent J. McIntosh, and Jeffrey B. Wall of Sullivan & Cromwell LLP served as co-counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

Petition Stage

Cert. petition granted

June 28, 2016

U.S. Chamber urges Supreme Court to grant review in Fair Housing Act case addressing liability for subprime mortgage lending

April 4, 2016

The U.S. Chamber filed an amicus brief urging the Supreme Court to review an Eleventh Circuit decision addressing two issues under the Fair Housing Act of widespread applicability and importance: the statute’s “zone of interests” and proximate causation. The brief argues that the Circuit decision contravenes the Court’s precedent. Additionally, the brief explains review is needed because the decision exposes lending institutions to virtually boundless liability, causing broad and dire policy implications for financial institutions, residential lending, and the national economy.

H. Rodgin Cohen, Brent J. McIntosh, and Austin L. Raynor of Sullivan & Cromwell LLP served as co-counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.