Klecan v. Countrywide Home Loans

Plaintiff homeowners, whose home was damaged by flooding, sued their refinancing lender and its subsidiary flood determiner, after they learned that lender had not required them to purchase flood insurance, and flood determiner did not find property to be in a flood zone, although an earlier flood determination had, and prior lender had required purchase of flood insurance. Claim against refinancing lender was dismissed under Flood Act. The Flood Act does not bar common law negligence claim by borrower against a flood determiner, who owes to the borrowers, who were foreseeable plaintiffs, a duty of care in the preparation of their flood determination. (LYTTON and SCHMIDT, concurring.)