Phila. Wants Wells Fargo to Turn Over Audits in Discrimination Row
The motion to compel says Wells Fargo is improperly "filtering" documents requested by the city and refusing to turn over any audits that do not specifically deal with both mortgage lending in Philadelphia and discrimination.
August 09, 2018 at 06:27 PM
4 minute read
As part of its efforts to hold Wells Fargo civilly liable for alleged discriminatory lending practices, Philadelphia is demanding that the lending giant turn over its internal and compliance audits.
The city on Thursday filed a motion with the U.S. District Court for the Eastern District of Pennsylvania asking to have the court compel all audits and audit-related documents related to the company's compliance with the federal Fair Housing Act when it comes to underwriting, purchasing, pricing or selling loans to minority residents of Philadelphia.
According to the motion to compel, Wells Fargo is improperly “filtering” the documents the city has requested and refusing to turn over any audits that do not specifically deal with both mortgage lending in Philadelphia and discrimination.
“These unilaterally-imposed 'filters' are contrary to the federal discovery rules, and ignore basic realities of how Wells Fargo functions as a national bank,” the city said in the motion, which was filed by Berger Montague attorney Sherrie Savett. “Wells Fargo's relevance objection is specious, and its refusal to even describe the responsive documents in its possession, custody or control as part of the meet and confer process, much less log any responsive audits it purports to be privileged, is inappropriate.”
In a statement issued Thursday afternoon, a spokesman for Wells Fargo said in an emailed statement, “Wells Fargo objects to the city's overly broad and improper discovery requests.”
A spokesman with the city Law Department declined to comment beyond the filing.
Philadelphia sued Wells Fargo in May 2017, alleging the bank violated the Fair Housing Act by targeting minority borrowers with high-risk and high-interest loans.
The lawsuit is the first that a city has lodged against a financial institution since a recent U.S. Supreme Court ruling established that municipalities have standing to sue banks over allegedly discriminatory lending practices.
The complaint, which was filed Monday in the U.S. District Court for the Eastern District of Pennsylvania, focuses on lending practices that occurred between 2004 and 2014, and contends that the allegedly discriminatory conduct caused high foreclosure rates in minority neighborhoods and lowered tax revenues that the city otherwise would have collected.
Wells Fargo, however, has fought back in a motion to dismiss, contending that the city's arguments were too much of a stretch to proceed and would require six steps to establish a connection between any allegedly discriminatory loans and the city's claimed injuries.
Earlier this year, the judge overseeing the case denied that motion, but gave the bank leave to refile it at a later stage.
Regarding the discovery dispute, the city said it made requests for any audits or analysis performed by external auditors that relate to the banking company's compliance with federal fair housing laws. After the company contended that it did not internally audit its compliance with the Fair Housing Act or other anti-discrimination laws, the city cited the company's annual reports and a complaint the U.S. Department of Justice filed against the company in 2012, which referenced an internal system monitoring compliance, the motion said.
The city said it made repeated attempts to clarify that it was not seeking solely internal documents, or audits that were specific to Philadelphia, however, the company continued to limit its search to documents that specifically analyzed both lending practices in Philadelphia and discrimination—documents the company said do not exist.
Philadelphia said there is no question relevant documents exist, and those documents should be turned over.
“There is no question that Wells Fargo's efforts, or lack thereof, to monitor its lending practices and implement an appropriate risk management and internal control framework represent core issues in this case, going directly to an element of the city's disparate impact claim,” the motion said.
Read the motion here:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllPlaintiffs Seek Redo of First Trial Over Medical Device Plant's Emissions
4 minute readRemembering Am Law 100 Firm Founder and 'Force of Nature' Stephen Cozen
5 minute readEckert Seamans Snags Reed Smith Global Financial Intelligence Director
3 minute readTrending Stories
- 1Recent Decisions Regarding the Telephone Consumer Protection Act
- 2The Tech Built by Law Firms in 2024
- 3Distressed M&A: Mass Torts, Bankruptcy and Furthering the Search for Consensus: Another Purdue Decision
- 4For Safer Traffic Stops, Replace Paper Documents With ‘Contactless’ Tech
- 5As Second Trump Administration Approaches, Businesses Brace for Sweeping Changes to Immigration Policy
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250