Roger Deming v. Merrill Lynch & Co Inc

MEMORANDUM

Roger J. Deming sought to bring an action on behalf of himself and others who were similarly situated, alleging that administrative and compliance review fees charges by First Franklin Financial Corporation (“Franklin”) on two real estate loans violated Washington state law and his rights under the common law. The district court granted summary judgment for Franklin holding that Deming’s claims were preempted by the National Banking Act and regulations promulgated by the Office of the Comptroller of the Currency (“OCC”). We affirm.

The district court properly determined that Deming’s claims under Washington state laws are preempted by federal law. In Watters v. Wachovia Bank, 550 U.S. 1, 18 , 127 S.Ct. 1559 , 167 L.Ed.2d 389 (2007), the Supreme Court held that a national bank could engage in real estate lending through an operating subsidiary. In Martinez v. Wells Fargo, 598 F.3d 549, 555 (9th Cir.2010), we held that state laws that “obstruct impair, or condition a national bank’s ability to fully exercise its Federally authorized real estate lending powers” are preempted. See also 12 C.F.R. § 34.4 (a). Here, applying the Washington Consumer Protection Act or the…