Justia Consumer Law Opinion Summaries

Debt collector Med-1 attempted to recover unpaid medical bills from Lavallee. The Fair Debt Collection Practices Act required Med-1 to disclose certain information to Lavallee, 15 U.S.C. 1692g(a), by including the required information in its “initial communication” with Lavallee or by sending “a written notice containing” the disclosures within five days after that “initial communication.” In March and April, Med-1 sent Lavallee two emails, one for each debt. The emails contained hyperlinks to a Med-1’s web server; a visitor had to click through multiple screens to access and download a .pdf document containing the required disclosures. Lavallee never opened those emails. When the hospital called her to discuss a different medical debt, she learned about the earlier debts and was told that they had been referred to Med-1. She called Med-1, but Med-1 did not provide the required disclosures. Nor did it send a written notice within the next five days. Lavallee sued Med-1. The Seventh Circuit affirmed summary judgment in favor of Lavallee, rejecting Med-1’s contention that its emails were initial communications that contained the required disclosures. The emails do not qualify as “communication” because they did not “convey[] … information regarding a debt” and did not “contain” the mandated disclosures. At most the emails provided a means to access the disclosures via a multistep online process. View "Lavallee v. Med-1 Solutions, LLC" on Justia Law

The Supreme Court reversed the decision of the court of appeals affirming the judgment of the district court dismissing Plaintiff's complaint alleging two counts under the Minnesota Consumer Fraud Act, Minn. Stat. 325F.69, holding that a person who is targeted by a fraudulent demand and consequently pays an attorney to investigate his liability in response to that demand has been "injured" within the meaning of the private attorney general statute, Minn. Stat. 8.31, subd. 3a.Plaintiff alleged that Defendant engaged in a practice of fraud by sending unlawful demand letters and that he suffered an injury by having to hire an attorney to respond to Defendant's fraudulent demands. The district court dismissed the counts based on violations of the Consumer Fraud Act for failure to state a claim. The court of appeals affirmed, concluding that Plaintiff failed to sufficiently plead that he was injured by Defendant's purported violation of the Act. The Supreme Court reversed, holding that Defendant's alleged violations of the Act caused him a pecuniary loss in the form of hiring an attorney to investigate and resolve the fraud, and therefore, Plaintiff alleged an injury sufficient to plead a cause of action under the private attorney general statute. View "Engstrom v. Whitebirch, Inc." on Justia Law

The Rodenburg Law Firm appealed a judgment dismissing its action against Kathy Sira, Mikhail Usher, and the Usher Law Group, P.C., for malicious prosecution, abuse of process, and exemplary damages. Sira initiated a Fair Debt Collection Practices Act (“FDCPA”) action against Rodenburg in New Jersey federal court, alleging Rodenburg, a North Dakota law firm, engaged in harassment and abusive debt collection tactics and violated 15 U.S.C. 1692 et. seq. Sira’s action was ultimately dismissed by agreement of the parties. After the dismissal of Sira’s action, Rodenburg sued Sira and her attorney, Usher and the Usher Law Group, in this action, alleging malicious prosecution. Rodenburg subsequently amended its complaint to include claims for abuse of process and exemplary damages. After a bench trial, the district court dismissed Rodenburg’s claims. The court found Sira lived in New Jersey, her allegations in the federal FDCPA action stated a claim for relief, and her allegations were based on reasonable trustworthy information made after a reasonable inquiry under the circumstances. The court found Sira’s lawsuit was not for an improper purpose and was not an abuse of process. The court also found her lawsuit was not a malicious prosecution because there was probable cause for the action and there was no malice. The North Dakota Supreme Court concluded the district court did not clearly err in dismissing Rodenburg’s claims for abuse of process and malicious prosecution. View "Rodenburg Law Firm v. Sira, et al." on Justia Law

In this putative class action brought on behalf of retail purchasers of an inflatable outdoor pool the Supreme Court reversed the judgment of the court of appeal upholding the ruling of the trial court denying the representative plaintiff's motion for class certification, holding that the trial court erred in determining that the class proposed by the plaintiff was not ascertainable.The claims in this case arose out of the plaintiff's purchase out of an inflatable pool sold in packaging that allegedly misled buyers about the pool's size. The trial court denied the plaintiff's motion for class certification in its entirety on ascertainability grounds. The court of appeal found no abuse of discretion in the denial of class certification. The Supreme Court reversed, holding that the trial court erred in demanding that the plaintiff offer evidence showing how class members might be individually identified when that identification became necessary. Specifically, the Court held (1) an ascertainable class is one defined in objective terms that make the eventual identification of class members possible; and (2) the trial court abused its discretion when it found no ascertainable class existed. View "Noel v. Thrifty Payless, Inc." on Justia Law

The Ninth Circuit reversed the district court's denial of class certification in an action brought by plaintiff against Nissan, under state and federal warranty laws, arising from an allegedly faulty hydraulic clutch system in plaintiff's 2012 Nissan vehicle.The panel held that, following Comcast Corp. v. Behrend, 569 U.S. 27 (2013), plaintiff's theory of liability—that Nissan's manufacture and concealment of a defective clutch system injured class members at the time of sale—is consistent with his proposed recovery based on the benefit of the bargain. Therefore, the district court abused its discretion when it denied class certification based on a misconception of plaintiff's legal theory. Accordingly, the panel remanded for further proceedings. View "Huu Nguyen v. Nissan North America, Inc." on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment for Experian in an action brought by plaintiff under the Fair Credit Reporting Act, alleging claims that arose out of a series of letters a credit repair organization sent to Experian on plaintiff's behalf.The panel held that 15 U.S.C. 1681i requires consumer reporting agencies to reinvestigate disputed items in a consumer's credit file if the consumer notifies the agency of the dispute "directly." In this case, plaintiff played no part in drafting, finalizing, or sending the letters Go Clean Credit sent to Experian on his behalf, and thus those letters did not come directly from him. Therefore, Experian was not required to initiate a reinvestigation. View "Warner v. Experian Information Solutions, Inc." on Justia Law

The Supreme Court affirmed in part and reversed in part the order of the district court granting a motion to dismiss in favor of Defendant on Plaintiff's action seeking a declaratory judgment and asserting that provisions of the Montana Retail Installment Sales Act (RISA) barred Defendant from collecting fees under the parties' agreement, holding that the 2007 version of RISA controlled and did not confer a private cause of action but that the district court erred in dismissing the complaint for failure to state a claim.In 2009, Plaintiff purchased a mobile home and financed the majority of the purchased through an installment sales contract and security agreement that was later assigned to Defendant. Plaintiff later filed this action alleging Defendant assessed excessive late fees against her and violated RISA by failing to disclose the finance charge. The district court dismissed the complaint for failure to state a claim. The Supreme Court reversed in part, holding (1) the 2007 version of RISA controlled and did not confer a private cause of action; but (2) the district court erred in dismissing the motion for failure to state a claim because Plaintiff properly asked the court for a declaratory judgment clarifying her rights under the agreement in light of the provisions of RISA. View "Strauser v. RJC Investment, Inc." on Justia Law

Bernal bought a monthly pass to Six Flags amusement parks. The contract said that if he fell behind on his payments, he would “be billed for any amounts that are due and owing plus any costs (including reasonable attorney’s fees) incurred by [Six Flags] in attempting to collect amounts due.” After Bernal missed several monthly payments, Six Flags hired AR, a debt collector. Under their contract, AR could charge Six Flags a 5% management fee plus an additional amount based on the number of days the debt was delinquent (in this case, an additional 20%), as is common in the market. AR hired NRA, a subcontractor, which sent Bernal a collection letter asking for the $267.31 he owed, plus $43.28 in costs. Reasoning that it could not have cost $43.28 to mail a single collection letter, Bernal filed a class-action lawsuit under the Fair Debt Collection Practices Act, alleging that NRA charged a fee not “expressly authorized by the agreement creating the debt,” 15 U.S.C. 1692f(1). The Seventh Circuit affirmed a judgment for NRA. A debt collector’s fee counts as a collection cost under that language. The contract unambiguously permits Six Flags to recover any cost it incurs in collecting past-due payments, and that includes a standard collection fee. View "Bernal v. NRA Group, LLC" on Justia Law

Plaintiffs filed suit against numerous parties, alleging violation of the Telephone Consumer Protection Act (TCPA). The Eighth Circuit revisited its prior holding in this case because of an intervening decision from the Supreme Court. The court held that, even under Spokeo, Inc. v. Robins, 136 S. Ct. 1540, 1549 (2016), plaintiffs suffered a concrete injury when they received the two answering machine messages and thus have Article III standing.The court also held that the district court did not abuse its discretion by refusing to give the jury plaintiffs' preferred instruction on direct liability regarding Defendant Leininger, who hired Defendant ccAdvertising, which made the calls in violation of the TCPA. Finally, the court held that the district court did not err in reducing the award of statutory damages against ccAdvertising, because the larger award would violated the Due Process Clause. View "Golan v. FreeEats.com, Inc." on Justia Law

Beginning in 2001, Ford received complaints from F-Series vehicle purchasers, relating to the fuel tanks. The problems were clustered in certain regions. Ford suspected that unique qualities in regional fuel supplies, particularly excessive concentrations of biodiesel, were causing delamination. In 2007, Ford released an improved tank coating. Ford’s warranty claims decreased, but some reports of delamination persisted. By 2010, Ford believed that the cause was not biodiesel but was acids found in fuel samples from service stations near a dealer that encountered numerous delamination complaints. Coba purchased two 2006 F-350 dump trucks for his landscaping business. By 2009, both trucks exhibited delamination. Ford's dealership replaced the tanks and filters in both trucks at no cost to Coba. Coba continued to have the same problems, even after the warranties expired. Coba filed a class-action, asserting breach of Ford’s New Vehicle Limited Warranty (NVLW), violation of the New Jersey Consumer Fraud Act (NJCFA), and breach of the duty of good faith and fair dealing. The Third Circuit affirmed summary judgment in favor of Ford. The denial of class certification did not divest the district court of jurisdiction, although jurisdiction was predicated on the Class Action Fairness Act, 28 U.S.C. 1332(d).The NVLW, which covered defects in “materials or workmanship” did not extend to design defects, such as alleged by Coba, which also negated his breach of the implied covenant of good faith and fair dealing claims. The evidence of Ford’s knowledge of the alleged defect did not create a triable NJCFA issue. View "Coba v. Ford Motor Co." on Justia Law