WA Supreme Court: Chevy Chase Must Adhere to Contract - No More Gerald Ford Skits
Okay, so maybe I really just wanted to see Chevy Chase's smiling face. Is that so wrong? I mean, really, if you haven't been paying attention to NBC's lineup, you really need to start. Mr. Chase is playing a community college student in the aptly titled Community. Of course, the chances of this opinion having anything to do with the hilarious star of Caddy Shack are pretty slim. In fact, they are nonexistent. This instead, has to do with the bank.
You see, Chevy Chase was charging tax and notary fees when reconveying title. Those fees were allowed under the deed of trust. Chevy Chase claimed instead that these fees Were authorized under federal regulation, and were preempted. The Supreme Court instead held that the fees were only incidental and us were not preempted by federal law:
State contract law does not purport to impose requirements on loan-related fees; state contract law instead requires parties to adhere to the terms of their contracts. Forcing Chevy Chase to adhere to the terms of its contract only incidentally affects the loan-related fees, as permitted under 12 C.F.R. § 560.2(c). See 61 Fed. Reg. 50951-01, 50966 ("OTS wishes to make clear that the purpose of paragraph (c) is to preserve the traditional infrastructure of basic state laws that undergird commercial transactions, not to open the door to state regulation of lending by federal savings associations.").