Countrywide's Mozilo Attempt To Move Florida AG Suit To Federal Court Thwarted As District Judge Boots Case Back To State Court

From the Office of the Florida Attorney General:

• Attorney General Bill McCollum [last week] announced that his office has obtained a federal court order remanding the Attorney General’s lawsuit against former Countrywide CEO and Chairman of the Board Angelo R. Mozilo back to Broward County Circuit Court. The lawsuit, filed last June, addresses deceptive trade practices relating to Countrywide’s alleged practice of placing consumers in loans they could not afford or with rates which were false or misleading. Mozilo was named as a defendant.

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• When the civil complaint was originally filed in Broward County Circuit Court by the Attorney General’s Economic Crimes Division, Countrywide and Mozilo sought to remove the action to Federal Court in Florida and the case was subsequently consolidated in the Southern District of California. Attorney General McCollum argued the case should be remanded to state court so Mozilo would be tried in Florida under Florida’s Deceptive and Unfair Trade Practices Act. Earlier [last] week, the Federal Court agreed with the Attorney General’s request and sent the case back to state court in Broward County.(1)

For the entire press release, see McCollum: Former Countrywide CEO, Board Chairman Must Stand Trial in Florida.

For the federal court order remanding the case back to state court, see State of Florida v. Countrywide Financial Corporation, et al.

(1) For more on erroneous removals of lawsuits filed in state court to federal court, see:

• Erroneous Removal As A Tool For Silent Tort Reform: An Empirical Analysis Of Fee Awards And Fraudulent Joinder,
• Judge Says Firm Must Explain ‘Fraudulent’ Removals or Pony Up $25K,
• Moving Cases From State To Federal Court: A Defense Ploy To Make Filing Suit More Costly, Burdensome On Individual Plaintiffs?