Press Releases
Nelson Mullins' Higgins Obtains Dismissal for HSBC
BOSTON (July 13, 2011) -- Boston associate Sean Higgins recently won dismissal of a complaint in US District Court in Massachusetts for client HSBC. The complaint asserted claims for breach of contract on a third-party beneficiary theory, breach of the implied covenant of good faith and fair dealing, negligence, and violation of the Consumer Protection Act, Mass. Gen. Laws ch. 93A.
In particular, the plaintiffs alleged that they were beneficiaries of the "Mortgage Selling and Servicing Contract" between HSBC and Fannie Mae, in which HSBC obligated itself to comply with HAMP guidelines and directives, and that HSBC failed to consider the plaintiffs' eligibility for a HAMP modification in accordance with the guidelines, entitling them to relief. The court's order represents a thorough and well-reasoned rejection of this theory. It's especially noteworthy because this court previously showed some receptiveness to HAMP claims in several related class actions, when it denied motions to dismiss complaints grounded on servicers' failures to convert trial period plans into permanent modifications.
