Justia Consumer Law Opinion Summaries

Articles Posted in U.S. 2nd Circuit Court of Appeals
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This case arose when the FTC alleged deceptive advertising claims against defendants based on two purported weight loss products, a Chinese Diet Tea and a Bio-Slim Patch. On appeal, defendants challenged both the power of the district court to award monetary relief and the means by which the district court calculated the award. The court held that the district court had the power to award restitution pursuant to Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. 53(b). The court also held that the district court did not err in ordering defendants to disgorge the full proceeds from its sale of the products in question. Accordingly, the court affirmed the judgment of the district court.

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Plaintiff, the personal representative of the Estate of Dorothy Brown, appealed from summary judgment certified as final pursuant to Federal Rule of Civil Procedure 54(b) in favor of Noxubee General Hospital (Noxubee) and Baptist Memorial Hospital-Golden Triangle (Baptist) and from a summary judgment in favor of Eli Lilly and Company (Eli Lilly). The action that gave rise to this appeal, removed from state court in Mississippi to a federal district court in Mississippi, and thereafter transferred to the Eastern District of New York, was brought to recover for the wrongful death of Ms. Brown allegedly due to her treatment with the drug Zyprexa, which was manufactured by Eli Lilly. An earlier appeal from the certified judgment in favor of Noxubee was withdrawn by stipulation. A motion to remand, predicated on the lack of diversity on the parts of Noxubee and Baptist were denied following the issuance of all the orders granting summary judgment. The court held that the appeals from the judgments entered in favor of Noxubee and Baptist were dismissed and the judgment dismissing the action against Eli Lilly were affirmed.

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Plaintiffs in these four cases appealed from a judgment of the district court granting summary judgment in favor of defendant and dismissing their product liability claims for injuries allegedly caused by defendant's prescription drug, Fosamax. Plaintiffs appealed the district court's decision concluding that their product liability claims, brought under Virginia law, were not tolled by the pendency of a putative federal class action that raised identical claims and dismissing plaintiffs' claims as time-barred. The court held that the availability of "cross jurisdictional tolling" in this context raised questions of Virginia law that were appropriately certified to the Supreme Court of Virginia.

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Plaintiffs, seeking to represent a class of customers with poor credit who purchased used automobiles from defendants, appealed from a judgment of the district court dismissing their complaint for failure to state a claim upon which relief could be granted. The complaint asserted that defendants violated the Truth in Lending Act (TILA), 15 U.S.C. 1601, et seq., and various state laws by burying hidden finance charges in the prices that plaintiffs were charged for these automobiles where defendant advertised the newer, more valuable used cars in its inventory at market prices, but sold the older, less valuable used cars to subprime credit customers for prices substantially higher than the market prices listed in the same guide. The court held that because the complaint did not contain any allegation for which it could plausibly be inferred that defendants failed to disclose a finance charge to plaintiffs, the judgment of the district court was affirmed.