Judge William Alsup of Northern District Rejects Preemption Argument in Federal Flood Insurance for Home-Equity Line Class Action

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In Hofstetter v. Chase Home Finance, LLC, No. C 10-01313 WHA, 2010 WL 3259773 (N.D. Cal. Aug. 16, 2010) (slip. op.), a putative class action involving federal flood insurance requirements for home-equity lines of credit, defendants JP Morgan Chase Bank, N.A. and Chase Home Finance, LLC moved to dismiss all federal and state claims alleged.

Defendants argued that they were required under the National Flood Insurance Act of 1968 (“NFIA”) to purchase $175,000 worth of flood insurance in connection with plaintiff Sheila Hofstetter’s home-equity line of credit, resulting in plaintiff being billed $1,575 in insurance premiums. Read the rest of this entry »