City of Miami Gardens v. Wells Fargo & Co.

956 F.3d 1319
CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 27, 2020
Docket18-13152
StatusPublished
Cited by8 cases

This text of 956 F.3d 1319 (City of Miami Gardens v. Wells Fargo & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Miami Gardens v. Wells Fargo & Co., 956 F.3d 1319 (11th Cir. 2020).

Opinion

Case: 18-13152 Date Filed: 04/27/2020 Page: 1 of 14

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 18-13152-AA ________________________

CITY OF MIAMI GARDENS, a Florida municipal corporation,

Plaintiff - Appellant, versus

WELLS FARGO & CO., WELLS FARGO BANK N.A.,

Defendants - Appellees. ________________________

Appeals from the United States District Court for the Southern District of Florida ________________________

BEFORE WILSON, Acting Chief Judge, WILLIAM PRYOR, MARTIN, JORDAN, ROSENBAUM, JILL PRYOR, NEWSOM, BRANCH, GRANT, and LUCK, Circuit Judges.*

BY THE COURT:

The Court having been polled at the request of one of the members of the Court and a

majority of the Circuit Judges who are in regular active service having voted against it (Rule 35,

Federal Rules of Appellate Procedure), the Petition for Rehearing En Banc is DENIED.

WILLIAM PRYOR, Circuit Judge, joined by NEWSOM and BRANCH, Circuit Judges,

respecting the denial of rehearing en banc:

A majority of the Court has voted not to rehear en banc our decision in City of Miami

Gardens v. Wells Fargo & Co., 931 F.3d 1274 (11th Cir. 2019), which held that the City of

* Chief Judge Ed Carnes and Judge Barbara Lagoa recused themselves and did not participate in this proceeding. Case: 18-13152 Date Filed: 04/27/2020 Page: 2 of 14

Miami Gardens lacked standing to bring its lawsuit under the Fair Housing Act against Wells

Fargo. Id. at 1277–78. As members of the panel, we write to explain why our decision adheres to

both Supreme Court and our precedent and to respond to Judge Wilson’s dissenting opinion.

It is well established that the City, as the party invoking federal jurisdiction, bore the

burden of establishing standing. Lujan v. Defs. of Wildlife, 504 U.S. 555, 561 (1992). And that

burden increased with the successive stages of litigation: although mere allegations sufficed at

the pleading stage, actual evidence was required to withstand summary judgment. Id.

In addition, federal courts always have “an independent obligation to assure that standing

exists.” Summers v. Earth Island Inst., 555 U.S. 488, 499 (2009). To be sure, the Supreme Court

has explained that, in limited circumstances, “elementary principles of procedural fairness”

mandate that a court provide the party with “an opportunity to provide evidence of [its standing]”

instead of sua sponte dismissing the action for lack of jurisdiction. Ala. Legislative Black Caucus

v. Alabama, 575 U.S. 254, 271 (2015). And our Court has held that the absence of notice of the

need to prove standing may sometimes mandate the application of a more lenient standard for

assessing standing. Church v. City of Huntsville, 30 F.3d 1332, 1336 (11th Cir. 1994).

Our decision adhered to these principles. The City failed to satisfy its burden of

establishing standing. And we respected the concerns of fairness and notice demanded by

precedent.

The City faced an uphill battle to establish its standing because it relied on an attenuated

theory of injury. Its principal theory was that Wells Fargo steered minority borrowers into

higher-cost loans that were more likely to go into foreclosure. These foreclosures then allegedly

decreased the value of the vacant properties and neighboring properties, which allegedly caused

economic injury to the City because property tax revenues decreased and its spending “to remedy

2 Case: 18-13152 Date Filed: 04/27/2020 Page: 3 of 14

blight and unsafe and dangerous conditions” increased. Miami Gardens, 931 F.3d at 1278–79.

To establish its standing, the City needed to prove that at least one of the purportedly

discriminatory loans caused or would cause it to suffer a de facto injury that a favorable decision

could redress. Id. at 1283.

In addition to standing, the City faced another hurdle: the statute of limitations. The

City’s complaint largely focused on purportedly discriminatory lending practices outside the

applicable two-year limitations period. See 42 U.S.C. § 3613(a)(1)(A). But the City contended

that all of Wells Fargo’s alleged violations were actionable under the continuing-violation

doctrine, which makes violations outside the limitations period actionable if the defendant

engaged in “an unlawful practice that continue[d] into the limitations period . . . [and] the last

asserted occurrence of that practice” was within the limitations period. Havens Realty Corp. v.

Coleman, 455 U.S. 363, 380–81 (1982) (footnote omitted). If the City could not establish a

violation of the Act during the limitations period, its complaint would be untimely.

Wells Fargo moved to limit initial discovery to the threshold question whether the City’s

complaint was timely. The City objected to that motion on the grounds that it would prevent it

from “prov[ing] its continuing violations and disparate impact allegations.” The district court

limited initial discovery to loans issued during the limitations period and later granted Wells

Fargo’s motion for summary judgment on the ground that the City had failed to establish that

Wells Fargo violated the Act within the limitations period.

The focus on the limitations period in the district court does not mean that the parties

ignored standing. To the contrary, Wells Fargo raised Article III standing “during the meet and

confer process,” in its answer to the operative complaint, and in its motion for summary

judgment. In the motion for summary judgment, Wells Fargo recited the City’s attenuated theory

3 Case: 18-13152 Date Filed: 04/27/2020 Page: 4 of 14

of standing and argued that, because the litigation was at the summary judgment stage, the City

needed to “actually produce some evidence that [it], and not just the borrower, ha[d] Article III

standing to sustain a claim under the Fair Housing Act.” Wells Fargo contended that the City

lacked standing because it failed to establish that it suffered an injury from a loan issued during

the limitations period. That argument was mistaken because a discriminatory loan issued at any

point could have established the City’s Article III standing. Nevertheless, Wells Fargo repeatedly

contended that the injury and causation elements of standing were lacking.

The district court also considered the City’s standing. It dismissed the City’s initial

complaint with a warning that any amended complaint would need to “allege . . . the facts that

confer standing to complain about private home foreclosures, the specific injury to the [City], the

precise number and dates of foreclosures, and the specific costs to the City of Miami Gardens.” It

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Bluebook (online)
956 F.3d 1319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-miami-gardens-v-wells-fargo-co-ca11-2020.