Borrowers’ Class Status for RICO Claims OK; Fees Paid Up Front Establish Predominance

A number of real estate borrowers were properly certified as a class in a RICO suit against a group of lenders who allegedly accepted fees for loan commitments they never intended to fulfill, the Tenth Circuit affirmed Dec. 8 (CGC Holding Co. v. Broad & Cassel, 2014 BL 344144, 10th Cir., 13-1255, 12/8/14).

The fact that the plaintiffs paid up-front fees allows for a reasonable inference that each class member relied on the lenders’ promises, Judge Timothy M. Tymkovich wrote for the U.S. Court of Appeal for the Tenth Circuit.

This evidence “is sufficient to present a ...