Appellants Francis Twardy and Clarence E. Owens appealed a district court order dismissing their complaint against Ocwen Financial Corporation and other defendants. The plaintiffs sought to enforce provisions of the Consumer Financial Protection Act and two prior consent judgments to which they were not parties. They also brought state law claims and sought preliminary injunctive relief. The district court dismissed the case, finding that the necessary federal agencies were not required parties, that the plaintiffs could not sue privately to enforce the federal statute, and that the state claims lacked jurisdictional support.
The D.C. Circuit reviewed the dismissal on the record and briefs, concluding the district court correctly applied established legal principles. First, the court held that the Consumer Financial Protection Bureau and the Office of the Attorney General for the District of Columbia were not required parties under Rule 19(a), meaning their absence did not prevent the case from proceeding or necessitating their joinder. Second, the court reaffirmed that individuals do not possess a private right of action to enforce 12 U.S.C. §§ 5531 and 5536, citing Council of and for the Blind of Delaware County Valley, Inc. v. Regan. Third, the court noted that plaintiffs could not sue to enforce consent judgments from prior cases to which they were not parties, relying on Rafferty v. NYNEX Corp. Finally, the court found no error in the dismissal of remaining state law claims for lack of supplemental jurisdiction under 28 U.S.C. § 1367 and dismissed motions for preliminary injunctive relief as moot.
The dismissal stands, leaving the plaintiffs without a judicial remedy for the alleged violations of the Consumer Financial Protection Act. The decision reinforces the limitation on private enforcement of the Act and clarifies that state law claims cannot be maintained in federal court when supplemental jurisdiction is lacking. The mandate is withheld for seven days pending any petition for rehearing.
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