Justia Consumer Law Opinion Summaries

The Court of Appeal affirmed a jury verdict in favor of plaintiff on his claim against defendant for violation of the Consumers Legal Remedies Act (CLRA). Plaintiff filed suit against defendant, alleging violation of the CLRA based on misrepresentations made during the sale of a used truck. The court found substantial evidence that plaintiff was a consumer within the meaning of the CLRA, and therefore held that he had standing to sue. Furthermore, defendant cited no case, and the court has found none, that holds the consumer must pay for the goods out of his own pocket rather than through a commercial entity to have standing under the CLRA. View "Kalta v. Fleets 101, Inc." on Justia Law

In this case concerning the legal relationship between the commercial custodian of three nondiscretionary IRAs and a named beneficiary of those accounts the Supreme Judicial Court reversed in part the decision of the superior court judge allowing UBS Financial Services, Inc.'s (UBS) motion for judgment on the pleadings as to all of Donna Aliberti's claims, holding that the facts alleged stated a claim that UBS's conduct violated Mass. Gen. Laws ch. 93A, 9 (chapter 93A).Following the death of the IRAs' original account holder this dispute arose between Aliberti, a named IRA beneficiary, and UBS, as IRA custodian. Aliberti asserted claims of breach of contract, breach of fiduciary duty, violation of chapter 93A, and intentional infliction of emotional distress. The superior court judge allowed UBS's motion for judgment on the pleadings as to all claims. The Supreme Judicial Court reversed in part, holding (1) there was no plausible claim for breach of fiduciary duty because the custodian of a nondiscretionary IRA does not generally owe a fiduciary duty to a named beneficiary of that IRA; and (2) the interactions between the commercial custodian of a nondiscretionary IRA and a named beneficiary of that IRA occur in a business context within the meaning of chapter 93A, and the alleged injurious conduct of UBS plausibly constituted a chapter 93A violation. View "UBS Financial Services, Inc. v. Aliberti" on Justia Law

Plaintiffs contracted to sell their condominiums. The Illinois Condominium Property Act requires an owner to give the prospective buyer a copy of the condominium declaration and bylaws, the condominium association’s rules, and other documents. The association’s board must furnish the required documents within 30 days of the owner’s written request; it may charge a reasonable fee. Sudler, which managed plaintiffs' buildings under contracts with the condominium associations, contracted with HomeWiseDocs.com, which assembles the required disclosure documents as PDFs, giving condominium owners almost instantaneous electronic access to the material needed to close a resale transaction. HomeWise charged plaintiffs $240 and $365 for PDFs of the disclosure documents. Plaintiffs filed a proposed class action, alleging violations of the Illinois Consumer Fraud and Deceptive Business Practices and Condominium Acts; aiding and abetting a breach of fiduciary duty; civil conspiracy; and unjust enrichment. The Seventh Circuit affirmed the dismissal of the suit. The Condominium Act does not provide a private right of action, and there is no basis in Illinois law to imply one. Illinois courts have held that charging too much for goods or services is not, alone, an unfair practice under the consumer fraud statute. The complaint does not plead an actionable breach of fiduciary duty, and unjust enrichment and conspiracy are not independent causes of action under Illinois law. View "Horist v. Sudler & Co." on Justia Law

SAI Montgomery BCH, LLC, d/b/a Classic Cadillac and Andrew Harper, general manager for Cadillac appealed a trial court order denying their motions to compel arbitration. The matter arose over a lease agreement. Customers made two lease payments before the car they lease was seized by law enforcement, and the lessees arrested for theft of property. A grand jury ultimately refused to return an indictment, and the lessees sued the Cadillac dealership and its general manager for malicious prosecution, slander, defamation and conversion, amongst other things. Because the Alabama Supreme Court concluded the trial court was without jurisdiction to enter the order appealed from, it dismissed the appeal. View "SAI Montgomery BCH, LLC v. Williams" on Justia Law

Plaintiffs sued, claiming that certain Tristar pressure cookers had defective lids that could come open while the cookers were in use, exposing the user to possible injury. The district court certified three separate state classes for trial: Ohio, Pennsylvania, and Colorado. During a trial recess, the parties agreed to a settlement with a nationwide class. The parties agreed to the principal amount but, with Tristar’s agreement not to dispute an award at or below $2.5 million, deferred determination of attorneys’ fees. Class members would receive a coupon to purchase a different Tristar product and a warranty extension. The court calculated the value of the coupons and warranty extensions as $1,020,985 and approved attorneys’ fees of $1,980,382.59. At a fairness hearing, Arizona made its first appearance, arguing as amicus, along with the U.S. Department of Justice, that the settlement was unfair because of the division between the principal settlement and attorneys’ fees. None of the class joined in objections to the settlement. The court indicated that it would approve the settlement. Before the court issued its order, Arizona sought to officially intervene under either Rule 24(a) Rule 24(b). The court rejected each of Arizona’s requests for lack of Article III standing. The Sixth Circuit dismissed an appeal, rejecting the state’s arguments that it had standing under the parens patriae doctrine, under the Class Action Fairness Act, 28 U.S.C. 1715, and because it has a participatory interest as a “repeat player.” View "Kenneth Chapman v. Tristar Products, Inc." on Justia Law

The Ninth Circuit filed an order amending its prior opinion, denying panel rehearing, and denying, on behalf of the court, rehearing en banc; and an amended opinion and dissent.The panel reversed the district court's judgment for plaintiffs in an action brought under the Fair Credit Reporting Act (FCRA), alleging that Fannie Mae falsely communicated to potential mortgage lenders, via its proprietary software, called Desktop Underwriter, that plaintiffs had a prior foreclosure on a mortgage account.The panel held that Fannie Mae is not a consumer reporting agency because, even if it assembles or evaluates consumer information through Desktop Underwriter, it does not do so for the purpose of furnishing consumer reports to third parties. Therefore, the panel held that the district court erred by granting plaintiffs' motion for summary judgment and denying Fannie Mae's cross-motion on this issue. The court also vacated the award of attorney's fees and costs to plaintiffs. View "Zabriskie v. Federal National Mortgage Association" on Justia Law

While driving his truck, Moun Keodalah and an uninsured motorcyclist collided. After Keodalah stopped at a stop sign and began to cross the street, the motorcyclist struck Keodalah's truck. The collision killed the motorcyclist and injured Keodalah. Keodalah's insurance policy with Allstate Insurance Company included underinsured motorist (UIM) coverage. Keodalah requested Allstate pay him his UIM policy limit of $25,000. Allstate refused, offering $1,600 based on its assessment Keodalah was 70% at fault for the accident. After Keodalah asked Allstate to explain its evaluation, Allstate increased its offer to $5,000. Keodalah sued Allstate asserting a UIM claim. The ultimate issue before the Washington Supreme Court in this case was whether RCW 48.01.030 provided a basis for an insured's bad faith and Consumer Protection Act claims against an insurance company's claims adjuster. The Supreme Court held that such claims were not available, and reversed the Court of Appeals. View "Keodalah v. Allstate Ins. Co." on Justia Law

The Song-Beverly Credit Card Act (Civ. Code 1747) makes it unlawful for merchants to request or require customers to provide “personal identification information” as a condition to accepting a credit card for payment. In 2015, the court of appeal held (Harrold) the Act does not prohibit merchants from requesting such information unless the request is made under circumstances that would lead a reasonable person to believe the information is required to complete the transaction. The trial court decertified a class of plaintiffs who alleged that retailer Williams-Sonoma violated the Act by requesting their zip codes or email addresses because any violation would depend on the circumstances of the specific transaction. Zip codes and emails were requested regardless of the form of payment. If the customer declined, the sales clerk bypassed the request. Employees had discretion not to solicit the information at all and could explain that the information was not required and was only being collected for marketing purposes. Williams-Sonoma neither rewards its employees for collecting the information nor disciplines them if they do not. Williams-Sonoma required each of its California stores to post signs at the cash registers stating that zip codes and email addresses were requested solely for marketing purposes and were not required. The court of appeal affirmed, finding that the court correctly applied the Harrold legal standard and its ruling is supported by substantial evidence. View "Williams-Sonoma Song-Beverly Act Cases" on Justia Law

The Supreme Court affirmed in part and reversed in part an order of the district court granting a petition for judicial review of a decision of the administrative law judge (ALJ) and vacated the ALJ's order finding that the Grace Period Payment Deferment Agreement (GPPDA) marketed by TitleMax of Nevada, Inc. violated Nev. Rev. Stat. 604A.445 and Nev. Rev. Stat. 604A.210, holding that the GPPDA impermissibly extended the duration of the loan.In 2014, TitleMax began offering the GPPDA, marketed as an amendment and modification to its 210-day loan and under which TitleMax collected seven months of interest-only payments calculated based on a static principal balance and then collected seven months of payments amortizing principal. The Nevada Department of Business and Industry, Financial Institutions Division brought the underlying administrative disciplinary action alleging that TitleMax violated sections 604A.445(3) and 604A.210. The ALJ ordered TitleMax to cease and desist offering the GPPDA and sanctioned TitleMax for willfully violating the statutes. The district court vacated the ALJ's order. The Supreme Court reversed in part, holding (1) because the GPPDA required borrowers to make unamortized payments and consequently charged "additional interest" it violated the pertinent statutes; and (2) TitleMax's statutory violation was not "willful" and thus did not warrant statutory sanctions. View "State, Department of Business & Industry, Financial Institutions Division v. TitleMax of Nevada, Inc." on Justia Law

Borrowers brought suit alleging that their lending bank had engaged in fraudulent real estate lending practices. The bank responded that statutes of limitations barred the borrowers’ fraud claims. Following an evidentiary hearing to establish relevant dates for the statutes of limitations inquiry, the superior court entered judgment and awarded attorney’s fees in the bank’s favor. The borrowers appealed, arguing that the superior court erred in its factual and legal determinations and otherwise violated their due process rights. Finding no reversible error, the Alaska Supreme Court affirmed the superior court’s rulings. View "Taffe v. First National Bank of Alaska" on Justia Law