Bank of America Corp.’s retail banking unit will face a lawsuit alleging that California-based
mortgage loan officers were not properly reimbursed for travel costs after a federal appeals court
rejected the bank’s bid to appeal class certification in the case.
Charlotte, N.C.-based Bank of America was seeking permission to appeal a Dec. 13 ruling from
U.S. District Judge Edward M. Chen of the U.S. District Court for the Northern District of California
that granted certification of a class of loan officers. The current and former loan officers allege that
Bank of America did not properly reimburse them for mileage they incurred getting to and from
meetings and open houses required for their jobs.
Bank of America filed a petition for an appeal Dec. 28 with the U.S. Court of Appeals for the Ninth
Circuit, arguing that there was not a common fact pattern among the approximately 1,800 loan
officers that could be included in the class.
The Ninth Circuit denied that request in a one-sentence order.
“I’m not surprised but relieved that the Ninth Circuit denied review. As class certifications go, this
didn’t seem to push any envelopes in my mind,” Aaron Kaufmann, an attorney with Leonard
Carder LLP representing the loan officers, told Bloomberg Law.
Representatives for Bank of America declined to comment.
Settlement talks are under way and a conference is scheduled for May 18, according to the district
court docket.
Negotiations had been on hold while the parties awaited the Ninth Circuit to weigh in on Bank of
America’s appeal request, Kaufmann said. But so far there had been a good foundation laid for
settlement talks. “Until you actually talk numbers, you have no idea how solid the groundwork is,” he said.
Bank of America is represented by O’Melveny & Myers LLP. The loan officers are represented by
Leonard Carder LLP and Wynne Law Firm.
The case is McLeod v. Bank of America , 9th Cir., No. 17-80255, 4/26/18 .
Reproduced with permission. Published 4/30/18. Copyright 2020 by The Bureau of National Affairs, Inc. (800-372-1033) <http://www.bloombergindustry.com>