Mortgage company found to have violated solicitation/collection law

To access case, press here

Hank Johnson, Jr., appeals the judgment in favor of American Classic Mortgage Corporation (“American Classic”) on his counterclaim seeking damages arising from American Classic’s alleged violation of Indiana Code Section 23-2-5-20. Johnson raises two issues, which we consolidate and rephrase as follows: Whether the trial court’s judgment in favor of American Classic and against Johnson on his counterclaim is clearly erroneous.

Conclusion (slip op. at 6):  We reverse the judgment of the trial court and remand to determine the amount of actual damages, interest, and attorney’s fees to which Johnson is entitled as a result of American Classic’s violation of IC 23-2-5-20.

Key Analysis (slip op. at 5):  We agree with Johnson that the trial court erred in concluding that he was required to prove by a preponderance of the evidence that American Classic intentionally violated IC 23-2-5-20.  IC 23-2-5-15 contains no scienter requirement. It is undisputed that American Classic filed a lawsuit against Johnson claiming that he owed it a 5% commission for obtaining a loan for him, that the loan was never closed, and that it took a default judgment against Johnson for $35,000. These facts establish that American Classic violated Indiana Code Section 23-2-5-20.

About Bose McKinney & Evans LLP

Bose McKinney & Evans LLP is a business law firm, headquartered in Indianapolis, Indiana, serving both publicly held and privately held businesses, governmental entities and high-growth industries. Our clients include Fortune 100 companies, international manufacturers, national and regional financial institutions, agribusinesses, sports teams, university-incubated start-ups, media, utilities, cities and schools, to name a few. We strive to build strong relationships with our clients as key business advisors, to exceed expectations in the quality of our work, to be knowledgeable about our clients’ businesses and sectors, to be responsive to service needs and to continually seek to improve the delivery of client services. Our ultimate focus is on our clients.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s