Katrina Victims Say Chase Manhattan|Cheated Them Of Interest On Settlements

     NEW ORLEANS (CN) – Chase Manhattan Mortgage Corp. cheated homeowners of interest on settlements for property damaged by Hurricanes Katrina and Rita, according to a class action in Orleans Parish Court.

     After the hurricanes the plaintiffs received settlement checks for property damages, written jointly to them and to their mortgage lenders, Chase Manhattan or Chase Home Finance. The plaintiffs endorsed the checks and sent them on to Chase. They say that Chase “did not place any portion of the settlement proceeds drafts in an interest bearing account,” and that Chase has not “ever paid to plaintiffs the interest generated by the settlement proceeds”, in violation of Louisiana law. Instead,
     Chase Manhattan “converted and otherwise misappropriated the settlement proceeds for their own use and for their own benefit,” the complaint states.
     Plaintiffs demand damages for unjust enrichment and conversion. They are represented by Kevin Oufnac with Kahn Gauthier Swick.

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