Citi Mortgage Mishandling Class Action Lawsuit Dismissed

A class action lawsuit brought by homeowners against Citi Mortgage Inc. and two other companies was dismissed this Monday by a Pennsylvania federal judge.

Lead plaintiffs Alexandra Trunzo and Anthony Hlista argued in their complaint that Citi mishandled their mortgage and foreclosure proceedings. Trunzo and Hlista allegedly purchased a home with a mortgage through Citi in 2007 and defaulted on the loan and foreclosed in 2010. The plaintiffs brought the class action lawsuit on behalf of “all former or current homeowners … who obtained financing secured by a first mortgage on property located within the Commonwealth of Pennsylvania, wherein collection demands on said mortgage loans were made by [defendants]. The class includes, but is not limited to, Homeowners whose Note and Mortgage was serviced by Citi or LBPS. The class excludes Homeowners wherein no payments, or demands for payments, have been made in the past six years.”

In 2012, U.S. District Judge Mark R. Hornak dismissed most claims against Citi except allegations Citi breached Pennsylvania’s Unfair Trade Practices and Consumer Protection Law. Citi argued that the class could not be certified for this class action lawsuit because it didn’t meet the requirements. Judge Hornak agreed with Citi, referring to a rule designating class action lawsuits as an exception to the rule that litigation can only be brought by and on behalf of individual named parties. For a class action lawsuit to be certified, it must meet specific requirements for numerosity, commonality, typicality and adequacy.

Judge Hornak found that the plaintiffs failed to adequately represent the interests of the absent parties because their class action lawsuit failed to request “final injunctive or corresponding declaratory relief respecting the class as a whole.” The judge also found that the plaintiffs failed to meet the typicality standard because the legal theories controlling the potential Class Members’ claims are not, and would not be, consistent class-wide.” He found that it was “clear from the face” of the plaintiffs’ complaint that the class action lawsuit failed to meet the typicality and predominance requirements necessary for class certification.

The Citi mortgage mishandling class action lawsuit accused Citi of mishandling foreclosure proceedings. Trunzo and Hlista took out loans in 2007 and defaulted in 2010. They allege that they were able to arrange a payment agreement with Citi that would allow them to keep their home. However, days after submitting payment, they received a foreclosure notice.

The plaintiffs Alexandra Trunzo and Anthony Hlista are represented by Michael P. Malakoff of Michael P. Malakoff PC.

The Citi Mortgage Mishandling Class Action Lawsuit is Alexandra R. Trunzo, et al. v. Citi Mortgage, et al., Case No. 2:11-cv-01124, in the United States District Court for the Western District of Pennsylvania.