Last updated: September 17. 2013 11:37AM - 480 Views
Associated Press



FILE - This Sept. 30, 2009 file photo shows the Richmond Bridge in Richmond, Calif. The Richmond City Council voted 4-3 early Wednesday, Sept. 11, 2013, to set up a Joint Powers Authority to bring more cities into the plan. Mayor Gayle McLaughlin says the city of El Monte in Southern California has expressed interest, and she believes other cities will follow. (AP Photo/Paul Sakuma, file)
FILE - This Sept. 30, 2009 file photo shows the Richmond Bridge in Richmond, Calif. The Richmond City Council voted 4-3 early Wednesday, Sept. 11, 2013, to set up a Joint Powers Authority to bring more cities into the plan. Mayor Gayle McLaughlin says the city of El Monte in Southern California has expressed interest, and she believes other cities will follow. (AP Photo/Paul Sakuma, file)
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(AP) A judge has dismissed a lawsuit over a Northern California city's plan to use eminent domain to seize underwater mortgages.


U.S. District Court Senior Judge Charles Breyer ruled Monday that the lawsuit was premature because the city of Richmond had not yet approved the plan.


Wells Fargo & Co., Deutsche Bank AG and The Bank of New York Mellon sued Richmond after city officials began discussing plans to use eminent domain to seize the mortgages and offer them back to homeowners at cheaper rates. The banks want to stop Richmond from seizing the loans.


John Ertman, an attorney for the banks, tells the Contra Costa Times (http://bit.ly/18sYqNu) that the judge's ruling only postpones the day that Richmond will have to defend the eminent domain plan in court.


Associated Press
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