Why the onslaught of lawsuits?
In housing and technology, lawsuits are on the rise which is not just an effect of the struggling economy but because of moving parts in the government.
Lawsuits for patent infringement are rising, especially in real estate technology and while a patent reform bill has passed in the Senate and has bipartisan support in Congress (not to mentioned is supported by Obama), opposition has spoken up at the eleventh hour as it nears approval.
Homeowners are increasingly suing banks, but infighting within governmental agencies has led to a potential inferior settlement between the government and banks regarding the robosigning debacle which has debilitated homeowners’ ability to recoup losses or effectively sue. But don’t think the courts won’t be filled with those who feel wronged despite their challenge to win.
To add to the confusion in housing, there are organizations that charge borrowers to file claims wherein homeowners can sue for “sweat equity” claims stating that because they did work on the house (including mowing the lawn) the bank actually owes them money. The documents the company files are allegedly outdated with language that hasn’t legally applied since prior to FDR’s administration. Attorney Craig Miller wrote in a court filing that the suit against his bank client is “part of a wave of ‘copycat’ complaints, all very lengthy and unsustainable.”
Patent lawsuits are rampant, companies are charging borrowers to file “dubious” lawsuits, banks are wrongfully foreclosing on homeowners, loan modifications are not being honored and the list goes on. Our question is- how is the legal system possibly going handle an exponentially rising number of lawsuits in our industry alone? Will those who have legitimately been wronged have to wait in an endless line behind shady suits? The coming years will be interesting to say the least.