Saturday, December 17, 2011

Court Boots Bulk Of Cleveland's Public Nuisance Suit Attempting To Hold Banksters Responsible For Peddling Subprime Loans

In Cleveland, Ohio, The Plain Dealer reports:

  • A Cuyahoga County judge has dismissed most of a 2008 public nuisance lawsuit Cleveland officials filed against 21 banks and mortgage companies in an attempt to punish them for bankrolling subprime loans.

  • The dismissal cuts off another avenue the city sought to collect millions of dollars in damages related to the foreclosure crisis. A similar suit was dismissed in July 2010 by the U.S. Circuit Court of Appeals in Cincinnati.

  • The lawsuit languished on Cuyahoga County Common Pleas Judge Brian J. Corrigan's docket for more than a year with no action taken until a Plain Dealer editor on Nov. 15 inquired about it.


  • But Corrigan left a portion of the city's lawsuit intact. Cleveland sought a claim that banks owe the city costs associated with the demolition of certain properties. This part of the suit will be heard in the future.

For more, see Common Pleas Court judge rejects most of Cleveland's suit against banks over subprime loans.

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