$26M Class Action Settlement to Benefit Homeowners

Rhodes v. Wells Fargo Bank


JDSA Law represents a certified class of over four thousand homeowners locked out of their homes, by Wells Fargo Bank, prior to completion of a foreclosure. 

On June 25, 2018, the United States District Court Eastern District of Washington granted preliminary approval of the class-wide settlement, providing a $26,305,000.00 common fund to benefit affected homeowners.  Clay Gatens, partner with JDSA, is lead class counsel for the homeowners.  

 
This is a remarkable settlement for the class, and provides a significant recovery for the thousands of Washington homeowners that experienced these illegal lock changes prior to the completion of any foreclosure.
— Attorney Clay Gatens
jdsa-logo-icon.png
 

This case is one of several cases involving Washington homeowners who have had their locks changed by lenders and mortgage servicers prior to foreclosure.  In 2016, Mr. Gatens argued in front of the Washington State Supreme Court, in a case against Nationstar Mortgage, LLC, challenging pre-foreclosure entries and lock changes on Washington borrower’s homes that were in default on their mortgages.  The Washington Supreme Court issued its decision and holding that the pre-foreclosure lock changes violated long-standing Washington law. 

Building on that decision, a federal district court ruled that illegal lock changes are a trespass and violate the Washington Consumer Protection Act. The court further ruled that homeowners whose locks were changed before foreclosure can recover damages, including the value of their destroyed lock and, the fair market rental value of their home during the time they were unlawfully locked out.

JDSA Law has successfully represented consumer plaintiffs in class actions against some of the largest lenders, loan servicers, insurance companies, and publicly traded companies in the nation.

These class actions provide an important avenue of relief for groups of people who have experienced a similar harm by a single defendant’s common acts and practices.  JDSA is proud to have developed a talented team of litigators who can successfully take on and prevail in these complex cases, providing important relief to thousands of Washington citizens.