WRRSV is pleased to announce a $36.3 million class action settlement in McLean, et al. v. First Horizon Home Loan Corporation (f/k/a McGuire Mortgage Company) Case No. 00 CV 228530 (Cir. Ct. Mo.).
First Horizon Home Loan Corp. has agreed to pay up to $36.3 million to settle the claims of over 4,000 class members who obtained second mortgage loans secured by Missouri residential real estate from First Horizon, McGuire Mortgage or FT Mortgage Companies between November 16, 1994 and April 13, 2005. Eligible Class Members may be entitled to substantial settlement benefits, averaging over $10,000.00 per loan for loans made before January 1, 1999, and averaging over $700.00 per loan for loans made on or after January 1, 1999.
The amount of the settlement benefit to which a class member may be entitled is based on a number of factors, including the date on which you obtained your second mortgage loan, the type and amount of loan fees that were charged, the rate and amount of interest paid, the number of loans you obtained, and whether you filed bankruptcy.
Eligible borrowers can see what we currently estimate the amount of their Settlement Benefit to be by accessing the Damage Claim Listings. The Damage Claim Listings contain Class Counsel’s estimate of the Settlement Benefit to be made available by McGuire/First Horizon for each Class Member’s loan and shows the approximate date of the last loan payment, if known. To access the Damage Claims Listings directly, click here.
On June 7, 2007, the Circuit Court issued its order giving final approval to the Settlement. (Click here for Final Approval Order) First Horizon must challenge individual class member claims on or before September 5, 2007. Under the terms of the Settlement, First Horizon must provide you with notice if your claim is challenged. [Click here to see Decision Tree regarding Challenges and Payment].
IMPORTANT: To recover benefits under the Settlement, Class Members must have completed, signed and mailed their Claim Forms by MAY 31, 2007.
On September 4 , 2007 Class Counsel received from the Settlement Administrator the Settlement Administrator’s determinations which includes partial and complete claim denials (click here to access the denials).
On September 5, 2007 Class Counsel challenged on behalf of Class Members the Settlement Administrator’s various claim denials whether complete or partial (click here to access the challenges by Class Counsel to The Settlement Administrator). On September 5, 2007 Class Counsel delivered to First Horizon a pleading which generally describes Class Counsel’s challenges to the Settlement Administrator ‘s denials, whether partial or complete (click here for Class Counsel’s challenge pleading).
On September 5, 2007 First Horizon challenged approximately 1400 individual Class Member claims and contingently challenged many of the same Claims the Settlement Administrator denied or partially denied (click here to access First Horizon’s challenges and contingent challenges). On September 5, 2007 First Horizon delivered letters which generally describe its challenges (click here for First Horizon’s general challenge letter) and contingent challenges (click here for First Horizon’s contingent challenge letter).
On September 25, 2007 Class Counsel delivered objections on behalf of individual Class Members to First Horizon challenges of Class Member claims. The objections filled fifteen (15) boxes and were for in excess of 1600 Class Members. The Objections responded to almost all of the 4130 individual challenges and adverse determinations asserted by First Horizon and the Settlement Administrator against 1670 Class Members.
On November 30, 2007 the Special Master ordered that certain claimants be allowed to submit an Amended Claim Form. For those affected Class Members the timing and procedure for submission of the Amended Claim Form has been explained in a letter from the Special Master. The Special Master’s letter and an Amended Claim Form was mailed to each affected Class Member on November 30, 2007. A copy of the Amended Claim Form can be downloaded from below.
February 8, 2008 Class counsel appeared at a hearing before the Circuit Court. The Court heard arguments regarding First Horizon’s Motion For Court Interpretation Of Settlement Agreement And Enforcement Of Judgment. First Horizon’s motion opposed the Order by the Special Master, which resolved various challenges raised by First Horizon by: 1) permitting certain class members to submit amended claim form; and 2) denying First Horizon’s challenge regarding claims submitted by class members who had filed Chapter 7 bankruptcy. After hearing argument from class counsel and First Horizon, the Court took the matter under advisement.
March 20, 2008 – Good News! Judge Scoville agrees with the Special Masters’ decisions regarding amended claim forms and class members who had filed Chapter 7 bankruptcy. Click here to see the Order
March 31, 2008 – First Horizon filed a Notice of Appeal in regards to the 3/20/08 Order from Judge Scoville regarding amended claim forms and class members who have filed Chapter 7 bankruptcies. Consequently, checks will not be mailed until the appeals process is complete. Click here to see the Notice of Appeal
May 8, 2008 – Special Master Ralston submitted an order directing First Horizon to show cause why the matter should not be referred to the circuit court upon Plaintiffs’ Motion for a Contempt Citation for 93 class members who filed Chapter 7 bankruptcies and whose trustee also filed a claim. Click here to see the Order
July 2, 2008 – In response to the “show cause” prceedings, First Horizon decided to pay the 93 class members who filed Chapter 7 bankruptcies and whose trustee also filed a claim. Checks will be made payable to both the Class Member and the Trustee and mailed to the Trustee.
December 17, 2008 – The Court of Appeals heard oral arguments on the matter. The arguments went well, and we are cautiously optimistic as to the Court’s ruling. We expect an opinion from the Court, given past history, within the next 90 days.
March 10, 2009 – Opinion by Appellate Court filed. The Court of Appeals decided that the Special Masters’ rulings are final and binding. First Horizon’s Appeal is dismissed. Click here to see the Opinion
March 26, 2009 – Great News! First Horizon did not ask to rehear or transfer the decision made by the Court of Appeals. Therefore, the Judgment is final and the claims affected by the appeal will now be paid.
April 17, 2009 – Checks for those claims that were subject to First Horizon’s appeal will be mailed on Tuesday, April 21, 2009. For those Class Members who filed Chapter 7 bankruptcy, the check will be made payable to both the Class Member and Trustee and mailed to the Trustee.
Links to Amended Claim Form
Links to Challenge Documents
Links to Settlement Documents
Links to Other Pleadings, Orders, Reports and Documents
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