Justia U.S. 3rd Circuit Court of Appeals Opinion Summaries

The Township proposed redevelopment that would eliminate 327-329 existing homes in a neighborhood, occupied predominantly by low-income minority residents, and replace them with more expensive housing, unaffordable to current residents. About half of the existing brick row houses, built in the 1950s, were owner-occupied. A 2000 report described the area as characterized by blight, excess land coverage, poor land use, and excess crime; the Township began to acquire properties. By 2008, 75 homes had been destroyed and 148 had been acquired and left vacant. By 2009, 110 more homes were destroyed, causing noise, vibration, dust, and debris. Residents alleged violations of the Fair Housing Act (42 U.S.C. 3604(a)); the Civil Rights Act of 1866 (42 U.S.C. 1982) ; and the Equal Protection Clause. The district court granted summary judgment to the Township. The Third Circuit reversed. Drawing all reasonable inferences in favor of the residents, the evidence was sufficient to establish a prima facie case of disparate impact under the FHA. The court must ask whether the Township's legitimate objectives could have been achieved in a less discriminatory way. Contrasting statements about the cost and feasibility of an alternative relying on rehabilitation, create genuine issues of material fact.

After refinancing her mortgage in 2006, plaintiff filed suit under the Truth In Lending Act, 15 U.S.C 1601, claiming failure to properly notify her of her right to cancel the mortgage. The court instructed the jury that, because her signature was on the notice of right to cancel, something more than her testimony was needed to rebut the presumption that she received it. The jury returned a verdict for defendants. The Third Circuit vacated and remanding, stating that there is no basis in TILA or the Federal Rules of Evidence for the instruction and the error was not harmless. The signature does no more than create a rebuttable presumption of delivery.

The district court granted a default judgment of foreclosure in favor of the mortgage company. Following a sale, at which the mortgage company was the successful bidder, the court granted a motion to set aside the sale because the mortgage company had failed to notify a junior lien holder of the sale, as required by state law, so that the junior lien remained in place. The court subsequently granted the junior lien holder's motion to vacate the set-aside order, reasoning that the notice issue involved an independent question of state law and was not properly before it. The Third Circuit vacated. The court's diversity jurisdiction extends to resolving issues that arise from an error committed during the pendency of its jurisdiction over a marshal's sale that it ordered. No overriding state policy or matter of substantial public concern, justifying abstention, was implicated in this case.