I assume that many of you remember the lawsuit that was filed as a class action against FNC last summer? The judge has been considering the request of FNC to allow the parties to go into arbitration since December of 2007.
In summary from Judge Roger W. Titus: "The crux of Plaintiffs’ claims is that FNC induced them to convey their business proprietary appraisal information via AppraisalPort to their client mortgage lenders through false representations that such information would be transmitted securely and would not be viewed, intercepted, or stored by anyone—not even AppraisalPort—except the sending appraiser and the receiving client mortgage lender.
In contrast to these representations,
"Plaintiffs allege, FNC has acquired and compiled this proprietary appraisal data into a “National Collateral Database,” where it may be accessed by subscribing lenders and other market participants."
Today a little bird delivered to me a 25 page memorandum written on August 28, 2008 . .
The Judge, in a 25 page Memorandum, has denied their request and has decided to allow the plaintiffs to go into the next phase of the legal battle.
MUST READ! Download Titus_Opinion_of_Motion.pdf
I would love to write some great lines to enrapture the minds of you, the readers of my articles, but in this case I will let Roger W. Titus, United States District Judge tell his opinion of the matter at hand:
“In the end, it is important to keep in mind that FNC drafted the user agreements for AppraisalPort with its own pen (or keyboard, more likely) so as to give it, and it alone, the power to modify its terms. Although one might normally consider this a blessing, it can also be a curse.
"While FNC was free to lay down the rules to govern its relationship with its users, it also took the risk that in doing so it would live to regret such rules when future circumstances proved them disadvantageous. The voluntary and knowing removal of the binding arbitration clause in the 2005Agreement is one such modification—or attempted modification—that FNC clearly grew to regret, but only after the filing of this case. Until this case, all actions by FNC indicated that it had wanted to effect the modification and believed it had done so successfully."