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Residential Credit Solutions, American Western Home Insurance sued over alleged breach of contract

By Robbie Hargett | Dec 28, 2015

ORLANDO, Fla. (Legal Newsline) – A Florida husband and wife are suing a residential loan servicing company and an insurance company over claims they profited illegally from force place insurance plans.

John C. Sekula and Jacqueline Sekula, individually and for all others similarly situated, filed a class-action lawsuit Dec. 15 in the U.S. District Court for the Middle District of Florida against Residential Credit Solutions and American Western Home Insurance, alleging breach of contract, breach of good faith and fair dealing, unjust enrichment, violations of the Truth in Lending Act, and tortious interference with a business relation.

The suit alleges Residential Credit Solutions improperly profited at the borrower's expense by wrongfully mandating that borrowers insure their homes with dwelling coverage limits in excess of the homes' replacement value and beyond the lenders' protectable interest.

If borrowers did not purchase the demanded insurance, the suit alleges Residential Credit Solutions would force place a policy contrary to the mortgage loan provisions' terms and conditions.

According to the suit, when Residential Credit Solutions force placed hazard insurance under its "exclusive" agreements with American Western Home Insurance, it was compensated with kickbacks, commissions, discounted services, financial benefits, reimbursements, or other compensation, which was concealed from borrowers.

The plaintiffs and others in the class seek actual and statutory damages, refund, interest, and attorney fees and costs, together to exceed $5 million. They are represented by attorneys Jordan M. Lewis, John J. Uustal, and Cristina M. Pierson of Kelley/Uustal in Fort Lauderdale, Florida.

U.S. District Court for the Middle District of Florida Case number 6:15-CV-02104-GAP-KRS

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Organizations in this Story

Kelley/Uustal Residential Credit Solutions

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