Kamilewicz v. Bank of Boston Corporation

Dexter Kamilewicz and others (plaintiffs) were absent members of a class-action lawsuit filed against the Bank of Boston and other defendants in an Alabama state court. The suit alleged that the Bank of Boston withheld escrow surpluses longer than provided by class members’ mortgages. The Alabama trial court granted partial summary judgment for the class. Class counsel prepared notice of proposed settlement. The Bank of Boston objected to the notice because it did not advise the class that settlement could result in out-of-pocket losses for certain class members. The Alabama trial court approved the notice. As part of settlement, Kamilewicz was refunded the escrow surplus associated with his mortgage. The refund reflected a credit of $2.19 in interest and a debit of $91.33 in attorneys’ fees, a loss of $89.14. Kamilewicz sued the Bank of Boston and class counsel (defendants) in the federal District Court for the Northern District of Illinois. The Bank of Boston and class counsel moved the Alabama trial court to order Kamilewicz to show cause as to why he was not bound by the order of settlement. Kamilewicz’s attorney appeared before the Alabama court to object to the court’s personal jurisdiction over Kamilewicz. The trial court affirmed the order of settlement. The federal district court dismissed Kamilewicz’s suit for lack of subject-matter jurisdiction. Kamilewicz appealed.