Justia Consumer Law Opinion Summaries

Articles Posted in Iowa Supreme Court
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The Supreme Court affirmed the judgment of the district court denying Exile Brewing Company's attempt to intervene in the underlying probate matter and striking Exile's motion to vacate, dismiss, and close two estates seeking to pursue certain claims, holding that the probate court did not err in denying the request to intervene and close the estates.During the 1950s and '60s, Ruth Bisignano owned and operated a popular bar in Des Moines. In 2012, Exile named one of its craft beers "Ruthie" and used Ruth's image. Ruthie died in 1993, and her estate was closed that year. Her husband Frank Bisignano died three years later, and his estate was closed in 1999. In 2020, Plaintiff successfully filed petitions to reopen both estates. Subsequently, as administrator of Frank's estate, Plaintiff sued Exile alleging common law appropriation and other claims. Exile filed a motion to vacate, dismiss, and close both estates, arguing that the probate court lacked statutory jurisdiction to reopen the estates. The probate court denied the motion, concluding that Exile had no right to intervene in the probate proceedings. The Supreme Court affirmed, holding that the probate court correctly determined that Exile was an interloper with no ability to challenge the estates' reopening. View "In re Estate of Bisignano" on Justia Law

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The Supreme Court affirmed the order of the trial court on interlocutory appeal denying Defendants' remand for a jury in this argument over the requirement that civil enforcement actions brought by the attorney general "shall be by equitable proceedings," holding that the requirement was enforceable and did not violate the jury right preserved by Iowa Const. art. I, 9.The attorney general commenced this action alleging that Defendants had violated the Iowa Consumer Fraud Act (CFA), Iowa Code 714.16, and the Older Iowans Act (OIA), Iowa Code 714.16A, by engaging in false and deceptive conduct and unfair practices in the "sale and advertisement of stem cell and exosome therapy in Iowa." Defendants answered and demanded a jury, but the attorney general moved to strike the jury demand because subsection 714.16(7) requires that civil actions "shall be by equitable proceedings." The district court granted the motion to strike, and Defendants applied for interlocutory review. The Supreme Court affirmed, holding that the district court did not err in striking Defendants' jury demand. View "State ex rel., Attorney General" on Justia Law

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The Supreme Court reversed the judgment of the district court dismissing Plaintiff’s two-count petition, holding that the district court erred in holding that a seller of auction services of certain machinery is entitled to summary judgment on a claim brought by a buyer of those services under the Door-to-Door Sales Act (DDSA), Iowa Code chapter 555A.Plaintiff brought this action claiming a violation of the DDSA and seeking a declaratory judgment challenging the underlying sales contract because of an invalid execution by a third party and because of fraud in the inducement. The district court granted summary judgment in favor of Defendant, concluding, among other things, that the DDSA does not apply to a contract for auction services, such as the contract in this case. The Supreme Court reversed, holding (1) Defendant was not entitled to summary judgment on the DDSA claim where Defendant presented no evidence that Plaintiff’s purpose in purchasing the auction services was not “primarily for personal, family, or household purposes”; and (2) because the declaratory judgment count had allegations beyond the DDSA the district court erred in dismissing this count of the petition. View "Morris v. Steffes Group, Inc." on Justia Law

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Plaintiffs filed a class action alleging that the fees Defendant charged for providing copies of their medical records and billing statements were excessive in violation of Iowa Code 622.10(6). Defendant filed a motion to dismiss for failure to state a claim, alleging that section 622.10(6) did not apply to it because it was not a provider under the statute. The district court denied the motion to dismiss. The Supreme Court affirmed, holding (1) an entity that acts as a provider’s agent in fulfilling records requests covered by section 622.10(6) cannot charge more for producing the requested records than the provider itself could legally charge; and (2) the well-pleaded facts in the petition indicated that Defendant acted as an agent of the providers by fulfilling the records requests on their behalf, and therefore, the district court was correct in denying Defendant’s motion to dismiss Plaintiffs’ petition. View "Young v. Healthport Technologies, Inc." on Justia Law

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Plaintiffs, former customers of West Bank, filed a multiple-count proposed consumer class action lawsuit against the Bank challenging one-time nonsufficient funds fees the Bank charged when Plaintiffs used their debit cards to create overdrafts in their checking account. Plaintiffs alleged usury claims and sequencing claims. The district court denied the Bank’s motions for summary judgment on the usury and sequencing claims but granted summary judgment on the Bank’s motion for summary judgment on Plaintiffs’ usury claim arising under the Iowa Ongoing Criminal Conduct Act. In a companion case issued today, the Supreme Court concluded that the district court erred in denying the Bank’s motions for summary judgment except as to the good-faith claim involving the sequencing of overdrafts. Likewise, the Court here found that the district court also erred in certifying the class action on all claims except for Plaintiffs' good-faith sequencing claim. View "Legg v. West Bank" on Justia Law

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Plaintiffs, former customers of West Bank, filed a multiple-count proposed consumer class action lawsuit against the Bank challenging one-time nonsufficient funds fees the Bank charged when Plaintiffs used their debit cards to create overdrafts in their checking account. Plaintiffs alleged usury claims and sequencing claims. the Bank filed three motions for summary judgment asking the district court to dismiss all of Plaintiffs’ usury and sequencing claims. The district court denied the Bank’s motions for summary judgment on the usury and sequencing claims but granted summary judgment on the Bank’s motion for summary judgment on Plaintiffs’ usury claim arising under the Iowa Ongoing Criminal Conduct Act. The Bank filed this interlocutory appeal on the district court’s denial of its motions for summary judgment. The Supreme Court affirmed in part and reversed in part, holding that the district court erred in denying the Bank’s motions for summary judgment except as to Plaintiffs’ claim based on a potential breach of the express duty of good faith in the sequencing of postings of bank card transactions. Remanded. View "Legg v. West Bank" on Justia Law

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Hawkeye Foodservice Distribution filed a petition for declaratory and injunctive relief against the Iowa Educators Corporation (IEC) and ten Area Education Agencies (AEAs) comprising IEC, seeking (1) a declaration that the operation of IEC was in violation of Iowa Code 273 and 28E; (2) equitable relief enjoining the AEAs and IEC from further operation in violation of Iowa law; and (3) injunctive and declaratory relief on the ground that the AEAs and IEC operate in violation of Iowa Code 23A. The district court granted Defendants' motion to dismiss, concluding (1) Hawkeye lacked standing to bring the chapter 273 and 28E claims; and (2) Hawkeye failed to allege sufficient facts demonstrating it was entitled to relief under chapter 23A. The court of appeals reversed. The Supreme Court vacated the court of appeals and reversed the district court, holding that the district court erred in (1) dismissing Hawkeye's chapter 273 and 28E claims for lack of standing, as Hawkeye's petition alleged facts that gave it standing to challenge the actions of the AEAs and IEC; and (2) dismissing the action, as the factual allegations set forth in the petition, if proved, stated statutory claims sufficient to defeat a motion to dismiss. View "Hawkeye Foodservice Distrib., Inc. v. Iowa Educators Corp." on Justia Law