Civil Procedure — federal preemption

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United States Court of Appeals For the Seventh Circuit

Civil

Civil Procedure — federal preemption

The federal Home Affordable Mortgage Program (HAMP) does not preempt state law tort claims.

“Broder dealt with a different federal law altogether and expressly confined its holding to apply only to the CPCA. Broder, 418 F.3d at 199. Furthermore, Wigod’s ICFA claims do not allege that Wells Fargo engaged in unfair or deceptive business practices by violating HAMP guidelines. Rather, she contends that Wells Fargo’s misrepresentation and omission of material facts misled her to believe she would receive a permanent modification under HAMP and that it implemented its HAMP compliance procedures in a way designed to thwart borrowers’ legitimate expectations. The plaintiff in Broder, in contrast, alleged that Cablevision’s violation of the CPCA’s uniform rate requirement was itself a deceptive practice. In his reply brief to the Second Circuit, he refined his argument along the lines of Wigod’s. The court indicated that this ‘subtler argument’ was more passable but declined to consider it because it was waived. Id. at 202. Wigod has made this argument all along, and so her ICFA claims are not inconsistent with Broder.”

Affirmed in part, and Reversed in part.

11-1423 Wigod v. Wells Fargo Bank, N.A.

Appeal from the United States District Court for the Northern District of Illinois, Manning, J., Hamilton, J.