MCSHANNOCK v. JP MORGAN CHASE BANK NA

No. 19-15899.

976 F.3d 881 (2020)

Susan MCSHANNOCK, as Executrix of the Estate of Patricia Blaskower, on behalf of the Estate of Patricia Blaskower and all others similarly situated; Monica Chandler, as Trustee of the Chandler Family Trust, and all others similarly situated; Mohamed Meky, and all others similarly situated, Plaintiffs-Appellees, v. JP MORGAN CHASE BANK NA, doing Business as Chase Bank, Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Filed September 22, 2020.


Attorney(s) appearing for the Case

Alan E. Schoenfeld (argued), Noah A. Levine , and Alexandra Hiatt , Wilmer Cutler Pickering Hale and Dorr LLP, New York, New York; David C. Powell and Alexander J. Gershen , McGuire Woods LLP, San Francisco, California; Brian D. Schmalzbach , McGuire Woods LLP, Richmond, Virginia; Nellie E. Hestin , McGuire Woods LLP, Pittsburgh, Pennsylvania; for Defendant-Appellant.

Glenn A. Danas (argued), Robins Kaplan LLP, Los Angeles, California; Michael F. Ram and Marie Appel , Robins Kaplan LLP, Mountain View, California; Michael J. Pacelli , Robins Kaplan LLP, Minneapolis, Minnesota; Samuel J. Strauss , Turke & Strauss LLP, Madison, Wisconsin; Harold Jaffe , Dublin, California; for Plaintiffs-Appellees.

H. Rodgin Cohen , Matthew A. Schwartz , Corey Omer , and Y. Carson Zhou , Sullivan & Cromwell LLP, New York, New York; Gregg L. Rozansky , The Bank Policy Institute, Washington, D.C.; Thomas Pinder , The American Bankers Association, Washington, D.C.; Steven P. Lehotsky and Janet Galeria , U.S. Chamber Litigation Center, Washington, D.C.; for Amici Curiae The Bank Policy Institute, The American Bankers Association, and Chamber of Commerce of the United States of America.

Scott L. Nelson and Allison M. Zieve , Public Citizen Litigation Group, Washington, D.C., for Amicus Curiae Public Citizen Litigation Group.

Xavier Becerra , Attorney General; Nicklas A. Akers , Senior Assistant Attorney General; Michele Van Gelderen , Supervising Deputy Attorney General; Rachel A. Foodman , Deputy Attorney General; Office of the Attorney General, San Francisco, California; for Amicus Curiae State of California.

Before: J. Clifford Wallace and Ryan D. Nelson, Circuit Judges, and James S. Gwin, District Judge.


OPINION

This case requires us to decide whether mortgagors are entitled, under California law, to interest on escrow accounts for mortgages that were issued by a savings association and later assigned to a national bank. We hold that California's law requiring the payment of interest on escrow accounts is preempted...

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