Even at closing, the balloon feature was not fairly or lawfully disclosed.
West Virginia law requires conspicuous disclosure of balloon payments. The amount of the balloon payment and its due date must be stated specifically on the promissory note.
It is undisputed that the promissory note that Quicken prepared contains no such disclosure. Jefferson was unaware of the amount of the balloon payment and its due date when the loan closed. Because this loan product amortizes over 40 years, it leaves the borrower with a very large balloon payment when it becomes due in 30 years.
She further opined that it was an outrageous product with a huge finance charge. After paying more than half of a million dollars on the loan, Ms.
Excessive Points and Closing Costs Quicken charged Ms. Discount points are intended to be in exchange for a 7 reduction of the interest rate. The maximum number of loan discount points available best online payday loans Virginia for this loan was 2. Jefferson that she was buying her interest rate down with the purchase of four discount points. But we do not have a strategy of holding services for the long term. Quicken creates a pool of loans and sells the pool on the secondary market. The larger the loan - the more Quicken makes in both points and sales.
Beginning in August 2006, Quicken attempted but failed to sell this loan numerous times. Foreclosure and Procedural History through Trial Within months of closing the loan, in January 2007, Ms. Because of a hemorrhage, she had to undergo a second surgery on an emergency basis. Jefferson was required to be off work for at least a few months. She advised Quicken of the same and asked for assistance with her payments. Several of her pleas for help over the next six months were in writing. Jefferson was able to make payments in January and February, Quicken was unwilling to work with Ms. In August 2007, Plaintiffs provided statutory notice of a claim and afforded Quicken a right to cure under W.
Plaintiffs were forced to obtain injunctive relief from the circuit court to avoid the immediate loss of their home.
See, PL Application for Preliminary no faxing loans Tennessee Injunction (Feb 1.
During litigation, Quicken declined to best online payday loans Virginia make a single offer of settlement before being found liable. On February 25, 2010, the circuit court entered its 26 page Memorandum of Opinion.
It found against Quicken on multiple counts, including: common law fraud, unconscionability (both unconscionable inducement and unconscionable contract under W. On September 1, 2010, the circuit court held the punitive phase, or Phase II of the trial, under Games v. Thereafter, the parties submitted briefs arguing the Games factors.
As regards to punitive damages, Quicken first argued that the circuit court erred by failing to apply the required factors under Games. Quicken further argued that the cancelation of the loan and the award of attorney fees could not be considered compensatory and therefore could not be included in the ratio analysis under TXO Production Corp. The Court declined to address the cancelation remedy in light of its partial reversal. However, with respect to attorney fees and costs, the Court adopted a new syllabus point. Importantly, Quicken did not seek an offset of the attorney fee award.
This Court found only that Quicken was entitled to offset compensatory damages. Proceedings on Remand On remand, the Honorable David Sims, who succeeded retired Circuit Judge Arthur Recht, entered a briefing schedule at the request of the parties. The matter is therefore ripe for this Court to conduct its own due process review of the punitive damage award.
While Judge Sims took the liberty of airing his discontent with the positions Quicken had taken on remand, his Order remains well-reasoned and well-supported by the record. The circuit court, however, did not cancel the loan outright as Quicken protests. Instead, the deed of trust remains a valid lien requiring the Plaintiffs to satisfy up to the principal balance before they transfer any interest in the secured 12 property. Turning to the issue of offset, the circuit court allowed an offset against compensatory damages. The issue in this appeal is whether Quicken is further entitled to offset the attorney fee award. SUMMARY OF THE ARGUMENT Quicken seeks a due process review of the punitive damages award under the three guideposts of Gore, 517 U. With best online payday loans Virginia regard to reprehensibility, the circumstances here warrant a substantial award of punitive damages. Quicken, through its ultra- aggressive policies, facilitated and encouraged the rank and file to engage in intentional malice, trickery and deceit.
Quicken Loans has shown no concern for any of the consequences of its conduct. As for the disparity between the award and harm or potential harm, there is practically none, as the circuit court appropriately found the potential harm attributable to Quicken to be both "enormous" and "incalculable.
Whether due process is framed around Gore or Games, the circuit court correctly applied all of the applicable factors. Accordingly, the circuit court committed no error best online payday loans Virginia best online payday loans Virginia and the punitive damages award should be affirmed. Relying on little more than out-of-place buzz-words, such as "forfeiture" and "status quo", Quicken criticizes the circuit court for refusing to enforce the unconscionable loan agreement. In its 2012 Opinion, this Court did not address whether Quicken could offset the attorney fee and cost award against the prior settlement. Now, Plaintiffs are subject to yet another appeal having sought only a single recovery of their divisible fees that remain unpaid. Finally, the circuit court did not abuse its discretion in making a supplemental award of attorney fees and costs on remand. The facts and legal arguments are adequately presented in the briefs and record on appeal, and the decision process would not be significantly aided by oral argument. The Court has heard oral argument previously and has already decided the facts that it will undoubtedly apply to the Games factors.