Dan Gilbert's attempt at a preemptive strike against the Justice Department has failed, at least for now.
U.S. District Judge Mark Goldsmith in Detroit on Thursday dismissed a preemptive lawsuit filed by Quicken Loans in April that accused the Justice Department of trying to strong-arm the Detroit-based mortgage lender into a big settlement over its lending practices, JC Reindl of the Detroit Free Press writes. Quicken could appeal.
The Detroit lender's suit was filed days before the Justice Department sued the mortgage lender for allegedly underwriting improper Federal Housing Administration-insured loans, the Free Press writes. The suit also had asked that the Justice Department case be heard in Detroit rather than Washington, where Quicken Loans is headquartered and where Gilbert enjoys a reputation in many peoples' eyes as a hero who has been instrumental in reviving downtown.
The Freep reports:
In his 24-page decision, Judge Goldsmith agreed with an argument made by the Justice Department's lawyers that Quicken filed its preemptive lawsuit in Detroit in hopes of getting the government's complaints against the company heard in Detroit as well.
"Given the procedural posture in this case, it certainly appears as though Quicken's complaint was filed for the purpose of acquiring a favorable forum," the judge wrote. "Quicken filed its lawsuit less than a week before the looming (government) enforcement action was filed."
