Simpson Thacher Obtains Dismissal of RESPA Class Action Against Title Insurers
In a Memorandum and Order dated November 8, 2010, the United States District Court for the Eastern District of New York dismissed with prejudice a putative class action against the Firm’s clients, Fidelity National Financial, Inc. and its title insurance operating companies, as well as several other title insurance companies. The complaint alleged that the defendants violated the Real Estate Settlement Procedures Act of 1974 (“RESPA”) by paying alleged kickbacks to title agents and other third parties in connection with the sale of title insurance and the plaintiffs sought to represent a nationwide class of title insurance purchasers. Simpson Thacher took the lead in briefing and arguing the motion to dismiss on behalf of all defendants.
This case is one of a series of cases that were commenced in February 2008 against title insurance companies in twelve states. While the only claim remaining in the present action involved alleged RESPA violations, the other complaints generally allege that title insurers illegally conspired to fix title insurance rates in violation of the antitrust laws. Most of those complaints have been dismissed, including all of the antitrust damages claims.
The team representing the Fidelity defendants in these cases include Barry Ostrager, Kevin Arquit, Scott Kobak, Patrick Shilling, Allyson Rothberg, Devin Ryan, Michelle Hertz, Michael Freedman, Greg Szewczyk, Hema Shenoi, Isaac Rethy, with invaluable paralegal assistance from Steven Wilson. Mr. Ostrager argued the motion to dismiss.