BROOKLYN (CN) – In a federal class action, a family-owned homebuilder and homeowner claims Treasury Secretary Henry Paulson denied him equal protection of law by excluding him from help under the $700 billion Troubled Assets Relief Program. Stanley Henry sues on behalf of anyone who, like him, has been excluded from TARP money for business or home loans, or who owes money to co-defendants J.P. Morgan Chase, Bayview Loan Servicing, and Option One Mortgage.
Plaintiff Stanley Henry is principal owner of the three plaintiff businesses, Henry Builders, Avery Enterprises and HKL Enterprises. He sues of behalf of his wife and children too. Henry says he owes money on his home and can’t get loans for his businesses or pay his business debts without government assistance.
A co-plaintiff, Hilda Robbins, is an elderly woman on Social Security. She owes money to Option One Mortgage for her home, which is worth less than she owes on it, and which she can’t refinance without government assistance, according to the complaint.
Plaintiffs claim the TARP program unconstitutionally excludes them for benefits, in favor of wealthy and well-connected corporations. They want an injunction protecting them from the lenders, and Sections 101 and 102 of the Emergency Economic Recovery Act of 2008 declared unconstitutional.
They are represented by Emanuel Towns.