SunTrust Can't Duck Force-Placed Insurance Kickback Claim

Law360, New York (March 26, 2014, 5:43 PM EDT) -- A Florida federal judge on Tuesday kept intact a class action accusing SunTrust Mortgage Inc. of reaping kickbacks in exchange for force-placing overpriced QBE Specialty Insurance Co. hazard policies, ruling that mortgagors are not precluded from suing by their own breaches of contract.

U.S. District Judge James I. Cohn determined that a mortgagor's admitted failure to live up to the terms of a loan by allowing hazard coverage to lapse or by defaulting on payments does not excuse the bank’s subsequent alleged contract breaches.

In their...
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