UWM Has Filed A SLAPP Lawsuit Against Owners Of A Facebook Page Dedicated To Brokers.
UWM has filed a SLAPP lawsuit against mortgage broker Ramon Walker. The lender alleges Walker used social media to unfairly promote competitors and misuse trademarked material.
UWM alleges Ramon Walker and Mortgage Solutions FCB dba Client Direct Mortgage breached their contract with UWM. The company also alleges Walker also violated UWM’s trademark infringement.
The federal lawsuit centers around a Facebook page named “Rocket Pro TPO v. UWM.”
UWM alleges Walker uses the page to improperly advertise and denigrate UWM’s services. The company also alleges the page promotes competitor, Rocket Pro TPO.
Walker has since taken down the trademark UWM logo. He replaced it with a photo of UWM CEO Mat Ishbia and Rocket Pro TPO’s Dan Gilbert.
Walker ended his relationship with UWM in December 2023. He received a cease and desist order from the company.
What Is In UWM’s SLAPP Lawsuit
The complaint claims that from June 2020 to May 2023, Mortgage Solutions delivered at least twelve loans equaling $124,011 were paid off within 180 days of disbursement. UWM argues that this breached the contract between UWM and Mortgage Solutions.
The lawsuit goes onto say that Walker misused UWM’s trademarked brand.
UWM’s lawsuit claims that the UWM trademark is “famous and distinctive.”
The company also alleges that it is an invaluable asset of substantial and inestimable worth to UWM.”
The lawsuit also states that Walker’s use of the UWM logo on his Facebook profile is unauthorized. In addition, they also allege that consumers and mortgage industry professional may be confused.
The lawsuit further alleges that Walker’s actions have interfered with UWM’s business relationships with its brokers. UWM claims the Facebook page causes confusion over the services UWM provides. UWM alleges the Facebook group serves primarily to undermine its business.
The lawsuit is just the latest UWM has filed. Earlier this year, it filed lawsuits against Atlantic Trust Mortgage Corporation and Madison Atrina LLC, which operates as District Lending, for allegedly violating its “All-In” initiative and sending loans to Rocket Pro TPO of Fairway Independent Mortgage Corporation, which recently exited the wholesale space.
Are UWM Lawsuits Against Former Broker Partners Just SLAPP Lawsuits?
SLAPP lawsuits are often brought by businesses, government bodies, or elected officials against those who oppose them on issues of public concern. In the case of a business interest, the filers may be seeking to protect an economic interest.
SLAPP lawsuits are also filed against people to stifle their First Amendment rights.
Examples of Actions Which Have Resulted in SLAPPs:
- Writing letters to the editor
- Circulating flyers or petitions
- Participating in a demonstration
- Filing complaints with a government agency
- Commenting at public hearings
- Filing legal claims or lawsuits
What Legal Claims are Made in SLAPP Lawsuits?
SLAPPs are also usually disguised as ordinary civil claims such as defamation, invasion of privacy, interference with contract and/ or economic advantage. Defamation is one of the most common legal claims used for SLAPP suits. Defamation is generally defined as a false statement of fact, either written (libel) or spoken (slander), which damages the plaintiff’s reputation.
Why are SLAPP Lawsuits Used?
One of the key characteristics of a SLAPP suit is that the lawsuit is not necessarily designed to achieve a favorable verdict. Instead, it is designed to intimidate the target in order to discourage them and others from speaking out on an issue of public importance.
In addition, SLAPP lawsuits are designed to engendering fear and intimidation. The party initiating the suit (SLAPPOR) often seeks to bleed the other party (SLAPPEE) of resources and produce a chilling effect.
In essence, SLAPPs are designed to discourage public discussion by using our legal system to choke the exercise of free speech.
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