Integrity Escrow v. Flagstar Bank
Mortgage lender Flagstar Bank, FSB (Flagstar), decided in early 2011 to make licensed escrow agent Integrity Escrow, Inc. (Integrity), ineligible to do business with Flagstar. Flagstar included Integrity’s name on a list of ineligible escrow agents; the list was made available to the mortgage brokers with whom Flagstar does business. Flagstar also told one mortgage broker that Flagstar had “blacklisted†Integrity.
Integrity sued Flagstar for intentional interference with contractual relations and with prospective economic advantage, unfair business practices, and defamation. The trial court granted Flagstar’s motion for summary judgment. We conclude there was no triable issue of material fact as to any of Integrity’s causes of action against Flagstar, and Flagstar was entitled to judgment against Integrity as a matter of law.
In brief, the claim for intentional interference with contractual relations fails because Integrity did not produce evidence of the requisite contracts. The claims for intentional interference with prospective economic advantage and defamation fail because the evidence shows Flagstar’s actions were privileged (in accord with uniform federal cases facing the same issue), and Integrity failed to show malice. Finally, the evidence does not support the unfair business practices claim, under any theory advanced by Integrity. We therefore affirm the judgment.
Comments on Integrity Escrow v. Flagstar Bank