On May 20, 2021, a year after Klafter Lesser partner Seth Lesser argued before the Court, the United States Court of Appeals issued a significant 2-1 decision upholding the claims in Maddox v Bank of New York. This class action seeks to remedy the Bank of New York’s failure to timely record mortgage satisfactions in accordance with New York State law, leaving individuals who paid off their mortgages in danger of negative credit reports. The specific legal issue was whether plaintiffs had standing under Article III of the United States Constitution in order to pursue these claims in federal court. The district court had ruled they did but had concluded the matter to be a “close question” and certified it to the Court of Appeals for addressing. The decision by the Second Circuit is a resounding success for plaintiffs in the Second Circuit who are pursuing claims, including for statutory damages, under many federal and state consumer protection laws. A copy of the decision can be found here.
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