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SOUTHEAST TEXAS RECORD

Thursday, April 18, 2024

June trial sought in fraud case against Bank of America

Although a higher court wiped out a $300,000 sanction against it, Bank of America may still go to trial for allegedly violating a mortgage settlement agreement with a Beaumont woman. 

As the Southeast Texas Record previously reported, Trudie Crutchfield filed a lawsuit May 7 in Jefferson County District Court against Bank of America Corp., formerly known as Countrywide Home Loans.

Court records show that on Jan. 23, Crutchfield filed a motion for preferential trial setting, stating that the defendants have breached multiple settlement agreements and have continuously attempted to foreclose on her property.

Because of that and an earlier 2008 filing of the case that was consolidated with the 2012 filing, the motion requests that a trial be set for June 24.

Crutchfield alleges the bank entered into a settlement agreement with her, promising to write off the remaining balance owed on her mortgage.

That settlement came after Bank of America breached an earlier settlement agreement with Crutchfield, according to the complaint.

Court records show that on June 21 Crutchfield filed a motion for sanctions, asserting that the bank was purposefully harassing her by violating the agreements, causing her to suffer many sleepless nights.

Court records show that onn June 27 Judge Bob Wortham, 58th District Court, made a verbal ruling on the motion, sanctioning the bank for $300,000.

On Aug. 13 Bank of America filed a petition for writ of mandamus.

Two months later, Ninth Court justices conditionally granted the writ on Oct. 11.

“We conclude the trial court abused its discretion, and relators have no adequate remedy by appeal,” states the Ninth Court’s opinion.

“The petition for writ of mandamus is therefore conditionally granted. We are confident that the trial court will promptly vacate its order. The writ of mandamus shall issue only if the trial court fails to comply.”

Crutchfield is represented by Beaumont attorney Wyatt D. Snider.

Attorney Dwayne Danner of the Dallas law firm McGlinchey Stafford represents the bank.

Case No. E192-419

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