Business Law
Washington Mutual Bank vs. Superior Court
Washington Mutual Bank v. Superior Court
Breach of Contract by the Washington Mutual Bank
In most cases, a breach of contract takes place in circumstances whereby one party does not perform exactly and precisely his or her contract obligations. These cases have been recorded mostly in the real estate industry. This is because the majority of sellers normally wish to vacate the house they are selling hastily. The Washington Mutual Bank victimized its borrowers through overcharging for insurance mortgage substitution.
The Washington Mutual Bank originated loans of home mortgages in Arizona, Texas, California and Colorado. It then bought loans from different lenders in the whole of America. The standard loan documents of the bank constituted a trust deed which required the mortgagor to keep hazard insurance on the secured property. It provided that in a case where the mortgagor did not do so, then the lender would do and pay whatever was required to protect property value and the rights of the lenders of the property (Tonnon, 2005).
Consequently, Jayne Briseno went to court to sue the bank for a breach of contract. The breach was as a result of the good faith covenant and fair dealing. Additionally, she felt that the mortgage transaction was an example of unfair practice of violations in business under the unfair competition law of the state of California concerning unjust conversion and enrichment. On the basis of the second amended complaint, the bank had maintained the activity of procuring costly replacement insurance when mortgagors made a default on their loan obligation to keep relevant hazard insurance policies for their properties. The amount charged by the bank for compelled order insurance was typically higher than the premium amount on the initial lapsed policy.
The foundation of the dispute was to determine if the bank was victimizing its borrowers by overcharging for the substitution of insurance
Washington Mutual Bank v. Superior Court
Breach of Contract by the Washington Mutual Bank
In most cases, a breach of contract takes place in circumstances whereby one party does not perform exactly and precisely his or her contract obligations. These cases have been recorded mostly in the real estate industry. This is because the majority of sellers normally wish to vacate the house they are selling hastily. The Washington Mutual Bank victimized its borrowers through overcharging for insurance mortgage substitution.
The Washington Mutual Bank originated loans of home mortgages in Arizona, Texas, California and Colorado. It then bought loans from different lenders in the whole of America. The standard loan documents of the bank constituted a trust deed which required the mortgagor to keep hazard insurance on the secured property. It provided that in a case where the mortgagor did not do so, then the lender would do and pay whatever was required to protect property value and the rights of the lenders of the property (Tonnon, 2005).
Consequently, Jayne Briseno went to court to sue the bank for a breach of contract. The breach was as a result of the good faith covenant and fair dealing. Additionally, she felt that the mortgage transaction was an example of unfair practice of violations in business under the unfair competition law of the state of California concerning unjust conversion and enrichment. On the basis of the second amended complaint, the bank had maintained the activity of procuring costly replacement insurance when mortgagors made a default on their loan obligation to keep relevant hazard insurance policies for their properties. The amount charged by the bank for compelled order insurance was typically higher than the premium amount on the initial lapsed policy.
The foundation of the dispute was to determine if the bank was victimizing its borrowers by overcharging for the substitution of insurance
References: DeAngelis, P. (2010). Master the Real Estate Licence Exams. California: Peterson Publishers Gambino, D. (2000). Breach of Contract. New York: Sterling House Publishers Rapalje, S. (2009). The Law Relating to Real Estate Brokers. Wisconsin: The University of Wisconsin Tonnon, A. (2005). Washington Real Estate. Chicago: Rockwell Publishing Walker, W. (1910). American Law of Real Estate Agency. New York: W.H. Anderson Co Publishers