For Immediate Release:
November 15, 2018

Media Contact:
Rachel Williams
The Five Star Institute
Rachel.Williams@TheFiveStar.com
214.525.6748
 

LEGAL LEAGUE 100 FILES AN AMICUS CURIAE BRIEF WITH THE U.S. SUPREME COURT IN OBDUSKEY V. MCCARTHY & HOLTHUS

DALLAS, November 15, 2018—The Legal League 100, a national professional association with a membership comprised of the nation’s leading financial services law firms, has filed an amicus curiae brief with the United States Supreme Court in the case of Dennis Obduskey v. McCarthy & Holthus, LLP.

The brief was authored by legal professionals representing Legal League 100 member firms BDF Law Group; Gilbert Garcia Group; Hladik, Onorato & Federman; McMichael Taylor Gray; Padgett Law Group; and Wright, Finlay & Zak.

"The Legal League 100 stands committed to serving mortgage servicing professionals and all of our industry partners,” said Legal League 100 Chair Roy Diaz. “I am proud to be part of an organization that recognizes the importance of judicial precedent and whose members provide diligence and resources advocating the equitable application of law as it pertains to the administration of nonjudicial foreclosures throughout the United States.”

The Legal League 100 argues in support of the respondents, McCarthy & Holthus, LLP, contending that law firms that act on behalf of their mortgage servicer clients by completing the non-judicial foreclosure process in states where permitted are not subject to regulation under the Fair Debt Collection Practices Act (FDCPA) because they are not collecting a debt, as defined under the plain language of the statute. The brief also contends that subjecting law firms engaged in non-judicial foreclosures to liability opens the door for opportunistic debtors’ attorneys to file lawsuits alleging violations in states where foreclosure laws are in conflict with the FDCPA.

The Legal League brief further contends that a finding in favor of the plaintiff would encourage mortgage servicers to consider proceeding with judicial foreclosures in states where permitted, which would significantly increase the time and costs associated with a foreclosure. These costs would eventually be borne by the borrower per the terms of most deeds of trust and state law. Further, it would also force states with carefully crafted foreclosure laws designed to protect borrowers and lenders to rewrite their laws in order to comply with the FDCPA.

On the subject of the amicus brief, Michelle Garcia Gilbert, Legal League 100 Advisory Council Vice Chair and counsel of record, said, "Application of the FDCPA to nonjudicial foreclosures is an issue that has a significant effect on the foreclosure process in states from coast to coast. We appreciate the opportunity to contribute and applaud the Court for taking up this important issue."

This sentiment was echoed by Legal League 100 Executive Director Derek Templeton, who said, “The members of the Legal League 100 are passionate about the practice of law and advocacy for the mortgage servicing industry. Today's filing represents yet another demonstration of the of the reach of the organization and the quality of financial services law firms that make up its membership."

About the Legal League 100
The Legal League 100 is the premier professional association of financial services law firms in the United States. With more than 100 member law firms spanning nearly 50 states and an organic, firm-driven leadership structure, the Legal League 100 stands committed to supporting the mortgage servicing industry through education, communication, relationship development, and advisory services.

About the Five Star Institute
Based in Dallas, Texas, The Five Star Institute (FSI) is a national trade association supporting the U.S. residential mortgage and real estate market through membership groups, publishing, conferences, education services, and strategic events. FSI advocates on behalf of and for industry stakeholders on policy matters and interests established to protect, preserve, and promote homeownership.

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