Wells Fargo LOSES at Seventh Circuit Appellate – Excoriating opinion regarding a HAMP Class Action. AND a Judicial Request for a Federal Amicus Curiae

In the
United States Court of Appeals
For the Seventh Circuit
No. 11-1423
Appeal from the United States District Court
for the Northern District of Illinois, Eastern Division.
No. 1:10-cv-02348—Blanche M. Manning, Judge.


HAMILTON, Circuit Judge. We are asked in this appeal

to determine whether Lori Wigod has stated claims

under Illinois law against her home mortgage servicer

for refusing to modify her loan pursuant to the federal

Home Affordable Mortgage Program (HAMP).

She brought this putative class action alleging violations

of Illinois law under common-law contract and tort

theories and under the Illinois Consumer Fraud and

Deceptive Business Practices Act (ICFA). The district

court dismissed the complaint in its entirety under

Rule 12(b)(6) of the Federal Rules of Civil Procedure.

This appeal followed, and it presents two sets of issues.

The first set of issues concerns whether Wigod

has stated viable claims under Illinois common law and

the ICFA. We conclude that she has on four counts …

These allegations support garden-variety

claims for breach of contract or promissory estoppel.

She has also plausibly alleged that Wells Fargo com-

mitted fraud under Illinois common law and engaged in

unfair or deceptive business practices in violation of the


The second set of issues concerns whether these

state-law claims are preempted or otherwise barred by

federal law. We hold that they are not.

We accordingly reverse the judgment of

the district court on the contract, promissory estoppel,

fraudulent misrepresentation, and ICFA claims …

IV. Conclusion

The judgment of the district court is therefore

REVERSEDas to Counts I, II, and VII, and the

fraudulent misrepresentation claim of Count V …

RIPPLE, Circuit Judge, concurring. I am very pleased

to join the excellent opinion of the court written by

Judge Hamilton. I write separately only to note that, in

my view, our task of adjudicating this matter would

have been assisted significantly if the United States had

entered this case as an amicus curiae.

In this case, this last consideration justifies the

decision to proceed without further delay. Prompt resolution

of this matter is necessary not only for the good

of the litigants but for the good of the Country.




Lori Wigod v. Wells Fargo

5 Responses to “Wells Fargo LOSES at Seventh Circuit Appellate – Excoriating opinion regarding a HAMP Class Action. AND a Judicial Request for a Federal Amicus Curiae”
  1. Beth A> says:

    Just another example of how many district court judges don’t know their butts from a hole in the ground — and so the litigants (esp. the homeowners) get to pay a thousands more in legal fees to see that justice is done.

    I’m so happy that Wells finally “bit it” on this one!

  2. TErrie says:

    Anyone that applied for a Modification – should demand to see the written denial of their “investor” and also request to verify the figures the servicer used in the determination – Compare the Numbers the servicer used to real numbers that the homeown supplied. Additionally, ask to see their BPO numbers relative to those figures they input for the NPV calculations. Do not accept a blanket denial – demand to verify they used the correct numbers and if you are in foreclosure – have your attorney request the correspondence and data used in their calculations.

  3. Lone Gasmask says:

    “Make the people who caused the crisis, pay for it. “

  4. Chet Goldstein says:

    Wells Fargo loses. Man, even lunch tastes better now. OCCUPY WELLS FRAUDCLOSURE!

  5. readdocs says:

    Well blow me down! A win for the little guy~

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