Question For College assignment. Luther vs. Countrywide

[LisaBlanner]

Jurisdiction

California

Hi everyone,

For a Business law class I was assigned to write a case analysis for Luther v. Countrywide Home Loans Servicing, 533 F.3d 1031 (9th Cir. 2008).

The case summary in the textbook addresses the plaintiffs assertion that Countrywide knowingly misled investors on the stability of securities backed by bundled mortgages (violation of the 1933 Securities Act). He alleges that because Countrywide willfully omitted details on the sudden, drastic increase in interest rates the mortgage holders would eventually experience, (as well as extending these loans to those with poor credit and shaky employment histories) they knew the MBSs were likely to lose value because the potential for loan defaults was unusually high.... essentially making the investment(s) worthless.

However, when I look up the details of the case on google or LexisNexis, (a requirement) the only details of the case revolve around Countrywide trying to get the case heard in Federal court, while the plaintiff wants it heard in State court. There is a brief mention of the details I provided above but little if any details on what was decided, or how the decision was made. With my abbreviated knowledge of law, I am unable to weed through the jargon and figure out what is going on in layman's terms. I was curious if someone might look over it and push me in the right direction? It is actually very short... Casetext

Thank you for any help

 

[adjusterjack]

What you've linked to is the full case decision except that at the following link you will find some footnotes explained at the end of the decision:

FindLaw's United States Ninth Circuit case and opinions.

the only details of the case revolve around Countrywide trying to get the case heard in Federal court, while the plaintiff wants it heard in State court.

That's exactly what the case is about.

little if any details on what was decided, or how the decision was made.

The judge's analysis does say exactly what was decided and exactly how it was decided.

That's what appellate decisions are supposed to do, make a decision and explain the basis for that decision.

It's in there.

I was curious if someone might look over it and push me in the right direction?

To do that I'd have to give you the answer and you already have the answer.

You've already analyzed the case decision. Go back over your post, find your analysis and write it in your reply and I'll tell you if you are on the right track.

 

[LisaBlanner]

Hi Jack, thank you for responding. This is still confusing to me because I'm not sure if details of the reason the lawsuit was filed is a necessary part of the case analysis, nor am I sure of what exactly is being argued in regards to where the case should be heard/held. The verbiage used is like a different language.

I'll start off by pasting the instructions for the assignment, followed by what I originally started off with just reading the summary in the book (before I read the full case) for added clarity.

ASSIGNMENT:
The student will prepare a one [1] page case analysis setting forth:

1. the name of case, parties, court and date of court decision [the court and date of decision are important for 'decisis'];

2. facts of case;

3. key issue [issue for which the case is cited in the textbook];

4. how the court decided the key issue;

5. how the court decided the case if for a different reason arising from an issue different than the issue cited in the textbook [as many cases have multiple issues];

6. whether you agree or disagree with court decision and why you agree or disagree with the court [your opinion is a substantive comment supported by your reasons not a repetition of what the court said]

MY ANALYSIS:
LUTHER v. COUNTRYWIDE HOME
United States Court of Appeals
Ninth Circuit, 2008
533 F.3d 1031

FACTS: The plaintiff brought action against the defendant for misleading investors about the risk of mortgage pass through certificates sold between 2005 and 2007. Because the value of the certificates are based upon the stability of the bundled mortgages that back the investment, Luther asserts Countrywide engaged in activity that violated (provisions in) the 1933 Securities Act by not adequately vetting the creditworthiness and employment history of individuals to whom they extended loans. As a result, an unusually high percentage of mortgage holders defaulted on their loans, thereby decreasing the value of the investment significantly.

ISSUE: Did Countrywide knowingly misrepresent the stability/risk of MBSs it sold to investors?

DECISION:

REASON:
END

Is it correct to briefly detail the origin of the case like I did above, or do the "facts" only revolve around the issue of state vs. federal court? If it is just the latter, what exactly is being argued, and what is it based on?

Thank you for your time

 

[army judge]

Hi Jack, thank you for responding. This is still confusing to me because I'm not sure if details of the reason the lawsuit was filed is a necessary part of the case analysis, nor am I sure of what exactly is being argued in regards to where the case should be heard/held. The verbiage used is like a different language.

I'll start off by pasting the instructions for the assignment, followed by what I originally started off with just reading the summary in the book (before I read the full case) for added clarity.

ASSIGNMENT:
The student will prepare a one [1] page case analysis setting forth:

1. the name of case, parties, court and date of court decision [the court and date of decision are important for 'decisis'];

2. facts of case;

3. key issue [issue for which the case is cited in the textbook];

4. how the court decided the key issue;

5. how the court decided the case if for a different reason arising from an issue different than the issue cited in the textbook [as many cases have multiple issues];

6. whether you agree or disagree with court decision and why you agree or disagree with the court [your opinion is a substantive comment supported by your reasons not a repetition of what the court said]

MY ANALYSIS:
LUTHER v. COUNTRYWIDE HOME
United States Court of Appeals
Ninth Circuit, 2008
533 F.3d 1031

FACTS: The plaintiff brought action against the defendant for misleading investors about the risk of mortgage pass through certificates sold between 2005 and 2007. Because the value of the certificates are based upon the stability of the bundled mortgages that back the investment, Luther asserts Countrywide engaged in activity that violated (provisions in) the 1933 Securities Act by not adequately vetting the creditworthiness and employment history of individuals to whom they extended loans. As a result, an unusually high percentage of mortgage holders defaulted on their loans, thereby decreasing the value of the investment significantly.

ISSUE: Did Countrywide knowingly misrepresent the stability/risk of MBSs it sold to investors?

DECISION:

REASON:
END

Is it correct to briefly detail the origin of the case like I did above, or do the "facts" only revolve around the issue of state vs. federal court? If it is just the latter, what exactly is being argued, and what is it based on?

Thank you for your time

You're right, almost.
It's not another language, it's just a very specific format.

These websites will help you understand how to brief, most importantly WHAT is in a brief, and what is NOT:
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LawNerds.com: Part 3: Get Smart About the Case Method
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How to Write a Case Brief for Law School | LexisNexis
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Sample Case Brief:
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This might be ESPECIALLY useful:
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Luther v. Countrywide Financial Corporation: Robbins Geller Rudman & Dowd LLP
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THIS TOO:
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Casetext
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One last HOW TO BRIEF A LAW SCHOOL CASE EXAMPLE:
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http://www.csun.edu/~kkd61657/brief.pdf

 

[army judge]

This site e en provides TEMPLATES you can use:
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Free Use Case Templates in Microsoft Word format, Free Use Case template in Rich Text format, Fully Dressed style Use Case templates
.
.

 

[LisaBlanner]

Hi Army Judge,

Believe it or not I have every one of these pages open w/the exception of the Robin Geller site. Maybe I need to walk away from it for a while because after reading these things over and over, I still don't know why there was a battle over where the case was heard, just that there was a battle over it. Until I can get past that, I'm uncertain as to what fits the definition of facts, issues, etc that are used in the tutorials you provided.

I'm also puzzled as to why there are no details of the decision to award the half billion dollars to the plaintiffs... apparently that isn't important?

 

[adjusterjack]

Believe it or not I have every one of these pages open w/the exception of the Robin Geller site. Maybe I need to walk away from it for a while

I agree that you should, at least, close all the reference material for now, as it will overload you, which is not necessary because the answer is in the case decision and you almost have it.

I know it's frustrating, but bear with me for a bit. I could easily give you the answer but I don't think that would do you much good.

Something about the "assignment" caught my eye so let's address it.

3. key issue [issue for which the case is cited in the textbook];

Please explain or quote the passage in which the case is cited in the textbook.

And here's another question about the assignment. It doesn't say anything about this but does your instructor intend that you complete your assignment based only upon what you read in the decision or does the instructor intend for, or expect, you to use other research to support the opinion asked for in Item 6?

Meantime, read the decision again and focus on just what the judge decided, forget the why for the moment, just tell me what the judge decided.

I'm being cagey about this because I want you to figure it out for yourself.

Start your reply with "The judge decided__________________..." Then fill in the blank. You can use the judge's own words if you like.

 

[LisaBlanner]

Hi again,

Good question, I should of addressed it earlier.

Something about the "assignment" caught my eye so let's address it.

Please explain or quote the passage in which the case is cited in the textbook.

Here is the case summary from the textbook (there are several at the end of each chapter).

CORPORATE SOCIAL RESPONSIBILITY
In 2007, Countrywide was the largest provider of home mortgage loans in the world. Countrywide specialized in so-called subprime mortgage loans that allowed homebuyers with relatively low credit scores the opportunity to qualify for a mortgage by paying a higher interest rate along with a monthly premium to insure the loan in case of a default. One of Country-wide's mortgages featured "teaser rates" that made initial payments artificially low. Nearly 50 percent of Countrywide's customers ended up defaulting within one year of when the teaser rate adjusted upward. Several customers filed complaints with regulatory authorities contending that Countrywide never disclosed that the payments would increase so dramatically and applicants relied on Countrywide's judgment that they could afford the loan.

The chapter is on Business, Societal, and Ethical Contexts of Law and the emphasis was on Countrywide acting irresponsibly. This is why I was hesitant when I couldn't find outside info on those specifics.

does your instructor intend that you complete your assignment based only upon what you read in the decision or does the instructor intend for, or expect, you to use other research to support the opinion

We are told to find the "full case" online and use that for our brief/analysis. That is about it. When others were asking him about it in class he shrugged his shoulders and said "it was pretty much self-explanatory."

 

[adjusterjack]

OK, now address the following.

just tell me what the judge decided.

Start your reply with "The judge decided__________________..." Then fill in the blank. You can use the judge's own words if you like.

 

[LisaBlanner]

OK, now address the following.

If I look at Luther v. Countrywide Financial Corporation: Robbins Geller Rudman & Dowd LLP, I come up with this...

- The judge decided in favor of the plaintiff(s), awarding 500 million dollars.

If I look at Casetext, I come up with this...

- The judge remanded the case back to state court

 

[adjusterjack]

You've misread the law firm's article. But, be that as it may, which would you choose based ONLY on your assignment and a reading of ONLY the decision itself?



Wait a few hours to reply as I'll be out for the afternoon and want to address this when I get back.

 

[LisaBlanner]

You've misread the law firm's article. But, be that as it may, which would you choose based ONLY on your assignment and a reading of ONLY the decision itself?



Wait a few hours to reply as I'll be out for the afternoon and want to address this when I get back.

Perhaps this is more accurate?

The judge granted the plaintiffs' right to bring their Securities Act claims in state court." The case however was eventually moved to federal court "based on federal bankruptcy jurisdiction."

(I'm in class ALL day Tues/Thurs. but will get back Tuesday night) Thank you!

 

[adjusterjack]

The judge granted the plaintiffs' right to bring their Securities Act claims in state court."

You got it.

The case however was eventually moved to federal court "based on federal bankruptcy jurisdiction."

I'm not sure you need to include that because a literal reading of the assignment does not ask you what happened with the case after the decision that you were asked to read. It asks only that you analyze that decision.

Now let's move on.

Where you explained the FACTS I suggest the following adjustment:

"FACTS: The plaintiff brought the underlying action against the defendant for misleading investors about the risk of mortgage pass through certificates sold between 2005 and 2007. Because the value of the certificates are based upon the stability of the bundled mortgages that back the investment, Luther asserts Countrywide engaged in activity that violated (provisions in) the 1933 Securities Act by not adequately vetting the creditworthiness and employment history of individuals to whom they extended loans. As a result, an unusually high percentage of mortgage holders defaulted on their loans, thereby decreasing the value of the investment significantly. However, this decision did not address that issue, it addressed only the venue in which the action was brought."

(The emphasis is to show you the changes. You don't type it that way.)

3. key issue [issue for which the case is cited in the textbook];

I suppose that would be the corporate responsibility alluded to in the textbook.

4. how the court decided the key issue;

The court obviously did not decide the issue of corporate responsibility in the cited case, it decided only the issue of venue.

5. how the court decided the case if for a different reason arising from an issue different than the issue cited in the textbook [as many cases have multiple issues];

That's where you explain the venue issue and the reasons for the court's decision.

6. whether you agree or disagree with court decision and why you agree or disagree with the court [your opinion is a substantive comment supported by your reasons not a repetition of what the court said]

I'm going to leave that up to you but if you would like to post your explanation, I'll be happy to critique it for you.

 

[LisaBlanner]

Hi again,
Does this seem like I'm on the right track? One thing the professor stresses (a lawyer himself) is the importance of brevity, and this is one thing I'm struggling with. Not because I'm verbose, but because I'm unsure where to stop in certain cases.

FACTS

• Alleging violation of the 1933 Securities Act, the plaintiff brought class action against the defendant in state court.
• "The . . . defendants removed the action to federal court under the Class Action Fairness Act of 2005."
• The plaintiff moved to have the case remanded back to state court.

ISSUE
The plaintiff asserts the defendant misled investors about the risk of mortgage pass through certificates sold between 2005 and 2007. Because the value of the certificates were based upon the stability of the bundled mortgages that back the investment, Luther asserts Countrywide engaged in activity that violated provisions in the 1933 Securities Act by not adequately verifying the creditworthiness and employment history of individuals to whom they extended credit (or... misrepresented the terms of the loan). As a result, an unusually high percentage of mortgage holders defaulted on their loans, significantly decreasing the value of the investment.

DECISION
The court found in favor of the plaintiff and the motion to remand (back to state court) was granted.

REASONING
The court concluded the CAFA's general grant of the right of removal of high-dollar class actions does not trump § 22(a)'s specific bar to removal of cases arising under the Securities Act of 1933 (satisfying the obligation of the plaintiff to prove "that an express exception to removal exists").

MY THOUGHTS
TBD

 

[army judge]

Hi Army Judge,

Believe it or not I have every one of these pages open w/the exception of the Robin Geller site. Maybe I need to walk away from it for a while because after reading these things over and over, I still don't know why there was a battle over where the case was heard, just that there was a battle over it. Until I can get past that, I'm uncertain as to what fits the definition of facts, issues, etc that are used in the tutorials you provided.

I'm also puzzled as to why there are no details of the decision to award the half billion dollars to the plaintiffs... apparently that isn't important?

When using Casetext, some browsers aren't supported, and certain mobile devices don't display the results of the search correctly.

Casetext seems weird at first, but stick with it, because when you get it working you'll think, "Wow, this Casetext thing is great, and its FREE."


Casetext

If you copy the link and use "Chrome" or a later version of "IE" on a laptop or desktop it should be very enlightening to you. LOL

 

[adjusterjack]

Does this seem like I'm on the right track?

Yes.

But, as I explained earlier, where you explained the ISSUE I think you need make it clear that that explanation is of the original lawsuit but the case decision under analysis has only to do with venue.

Other than that I think you've done quite well at the assignment. Of course, that's only my opinion.

 

[LisaBlanner]

Yes.

But, as I explained earlier, where you explained the ISSUE I think you need make it clear that that explanation is of the original lawsuit but the case decision under analysis has only to do with venue.

Other than that I think you've done quite well at the assignment. Of course, that's only my opinion.

Thank you very much for your help, I'm going to try and run what I have past the professor Thursday to get some feedback. I will post his thoughts and my opinion on the case in a couple days

 

[LisaBlanner]

Hi again,

When trying to come up with "whether you agree or disagree with court decision and why you agree or disagree with the court (a substantive comment supported by your reasons not a repetition of what the court said)," I'm having a hard time not simply agreeing with the fact that the specificity of 1933 Securities Act gives it more weight than the CAFA, which "cover a more generalized spectrum" --which is stated by the court.

Would it be accurate to say that precedent was established in previous cases and those were used to influence this decision? I see references to other cases but don't see that mentioned in the summary. We covered common law/stare decisis/precedent, so I thought I might include that if applicable.

Truth be told, I have no clue whether or not I agree or disagree. Who am I do disagree with an appellate judge on a bureaucratic decision over venue?

Any thoughts or nudge in the right direction? Thank you

 

[adjusterjack]

Who am I do disagree with an appellate judge on a bureaucratic decision over venue?

Who are you?

You're a citizen of the United States of America and your opinion counts.

It was the efforts of individual citizens like you who were instrumental in getting the US Supreme Court to rule (on two important occasions) that the 2d Amendment was an individual right. Thank you Mr Heller. Thank you Mr McDonald.

Remember, there is still another court level above the US Court of Appeals, Ninth Circuit and the higher court might be convinced to reverse the decision.

Agree or disagree but not because the court said so. See if you can come up with something inherent in the decision that you can believe in or not believe in and then express it. There's no right or wrong answer, the instructor is looking at how your reasoning backs up your opinion.

 

[LisaBlanner]

Agree or disagree but not because the court said so. See if you can come up with something inherent in the decision that you can believe in or not believe in and then express it. There's no right or wrong answer, the instructor is looking at how your reasoning backs up your opinion.

Hi AJ, thanks for responding. Any thoughts on what I might dig into to find a different opinion? Also, on the website that gives details of the case (Casetext) I see various passages highlighted and some things titled "summaries from subsequent cases." Does this mean these particular points/decisions were influential or specifically used as precedent in this case?

Thank you