Eleventh Circuit Affirms Dismissal of Suit Seeking to Force Modification of Home Loan
The lender, Chase, had agreed to a temporary loan modification in 2009, but in 2010, Chase informed Mr. Miller that the modification would not be extended. Mr. Miller brought suit under the federal Home Affordable Modification Program (HAMP) alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and promissory estoppel. The District Court granted Chase’s motion to dismiss finding that HAMP provides no private right of action and that Mr. Miller would have no claim even if it did.
The Eleventh Circuit agreed with the District Court in full. It noted the standards for a court’s recognition for an implied private right of action and found that they were not met with respect to HAMP. In addition, it agreed with the District Court that Mr. Miller had no claim against Chase indpendent of obligations arising from HAMP. He had effectively abandaned his breach of contract claim, and Georgia law does not recognize an independent cause of action for breach of the duty of good faith and fair dealing. Mr. Miller’s promissory estoppel claim was doomed because he apparently never alleged that Chase had promised that it would agree to modify his loan permanently.
[JT]