Chase Escapes Claims In Flood Insurance Kickback Suit

Law360, Washington (March 8, 2012, 4:45 PM EST) -- A Florida federal judge on Wednesday partially junked a class action alleging JPMorgan Chase Bank NA took improper kickbacks from American Security Insurance Co. in forcing mortgage customers to buy high-premium flood insurance policies, but granted leave to amend some claims.

U.S. District Judge Virginia M. Hernandez Covington permanently dismissed Ruth Gordon and Anthony Arango's claims for conversion and unjust enrichment, but preserved their claims for unconscionability and breach of fiduciary duty. The borrowers alleged Chase has an exploitative and self-dealing relationship with ASIC, and are...
To view the full article, register now.