Alert July 10, 2012

Supreme Court Declines to Rule on RESPA Title Kickback Case

After granting certiorari and holding oral arguments, the United States Supreme Court refused to issue an opinion in a Ninth Circuit appeal case concerning whether a purchaser of settlement services has standing under the Real Estate Settlement Procedures Act to pursue an action in federal court without demonstrating that an alleged RESPA violation resulted in an overcharge.  The Ninth Circuit held that the RESPA violation in and of itself gave rise to an injury in fact, which satisfied the standing requirements of the Constitution.  The Supreme Court issued a single line slip opinion that stated “[t]he writ of certiorari is dismissed as improvidently granted.”