The 1974 Real Estate Settlement Procedures Act bars, among other things, kickbacks by title insurance companies. Under the law a plaintiff can sue without having to show actual injury. At least that was the argument made by the lawyer representing Denise Edwards, the homebuyer in this case who sued First American Financial Corp.
But it was an uphill battle. Justice Scalia questioned, “I’m not even sure it’s proper to call it a kickback. It’s a commission.” And Justice Alito told Edwards’ attorney, Jeffrey Lamken, “We are looking for whether there is injury in fact.”
In his rebuttal Aaron M. Panner, the lawyer for First American, reaffirmed that “what is required is an injury-in-fact, a harm to the plaintiff who is seeking to obtain redress from the courts.
Mike Sacks brilliant analysis of the argument is here.