16630 Southfield Ltd. P'ship v. Flagstar Bank, FSB, No. 12-2620 (6th Cir. 2013)
Annotate this CaseDanou is a naturalized U.S. citizen from Iraq. He, his family, and his trust own several real estate ventures, including Southfield, Triple Creek, and Danou Technical. In 2006 Southfield borrowed $13 million from Flagstar Bank. Danou, Triple Creek and Danou Technical guaranteed the loan; Southfield and Triple Creek put up collateral. Southfield did not repay the loan in full when it came due in 2009 and the parties restructured the loan. In 2011, Chambless, a Flagstar employee charged with work on the bank’s “troubled assets” and loans, investigated Southfield’s finances, although Southfield claims it was current on all of its restructured obligations. Chambless told Danou that Flagstar “would under no circumstances ever consider an application” to refinance the loan again. The following year, when Danou requested an extension, the bank refused to provide an application, despite Danou’s offer of additional collateral and his wife’s guarantee. The district court dismissed a claim of national origin discrimination under the Equal Credit Opportunity Act, 15 U.S.C. 1691. The Sixth Circuit affirmed. Between the obvious alternative explanation for the denial and purposeful, invidious discrimination a court will not infer discrimination.
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