Justia Consumer Law Opinion Summaries

Defendant Ricardo Maldonado owned a business purchasing homes from financially distressed owners, negotiating with lenders, and repairing and selling the homes. Anthony D'Agostino saw an advertisement for Maldonado's company and contacted Maldonado in 2008, at which time the estimated fair market value of plaintiffs' property was $480,000. The parties verbally agreed that plaintiffs would pay Maldonado, and he would repair the property and bring the mortgage current using rental payments. The documents Maldonado prepared and plaintiffs signed created a trust naming Maldonado the sole trustee. An option allowed plaintiffs to recover title by paying Maldonado $400,000 within one year. In March 2008, plaintiffs executed a quitclaim deed transferring full interest in the property to Maldonado. The deed stated that Maldonado paid $360,000 for the interest, though he actually paid nothing. Over the following months, Maldonado spent his own money on mortgage payments, outstanding taxes, and repairs. Anthony D'Agostino later offered $40,000 to regain title. Maldonado declined, informing plaintiffs they could repurchase the property for $400,000. Plaintiffs filed a complaint, alleging a violation of the CFA. The trial court found that plaintiffs had sustained their burden with respect to the CFA violation since the transaction was based on misleading documents that gave rise to an "unconscionable commercial practice." The trial court voided the conveyance to Maldonado, restored title to plaintiffs, awarded treble damages and attorneys' fees. The parties appealed, and the Appellate Division remanded only for a recalculation of plaintiffs' damages. After its review, the Supreme Court concluded that the trial court correctly found Maldonado's execution of the transactions at issue gave rise to an unconscionable commercial practice, and that that the trial court did not abuse its discretion in its calculation and subsequent awarding of damages.View "D’Agostino v. Maldonado" on Justia Law

Appellant was in the business of extending high-risk loans to customers with poor credit ratings and operated primarily in Louisiana. Appellees, who resided in Arkansas, obtained four loans from Appellant at its location in Louisiana. After Appellees failed to make payments on the loans, Appellant filed in an Arkansas circuit court a notice of default and intention to sell Appellees' home. Appellees asserted the defenses of usury, unconscionability, esoppel, unclean hands, predatory lending practices, and a violation of the Arkansas Deceptive Trade Practices Act. The circuit court found that the loans constituted predatory lending by a foreign corporation not authorized to do business in Arkansas and that the contract between the parties was unconscionable and could not be given full faith and credit. The Supreme Court affirmed, holding (1) the circuit court's findings of unconscionability and predatory lending practices were not clearly erroneous; and (2) court did not err in refusing to enforce the mortgage, as to do so would contravene the public policy of the State of Arkansas.View "Gulfco of La. Inc. v. Brantley" on Justia Law

State Farm Fire and Casualty Company appealed an adverse judgment entered on a jury verdict in in favor of homeowner and policyholder Shawn Brechbill on his claim of "abnormal" bad-faith failure to investigate an insurance claim. "A bad-faith-refusal-to-investigate claim cannot survive where the trial court has expressly found as a matter of law that the insurer had a reasonably legitimate or arguable reason for refusing to pay the claim at the time the claim was denied. Because State Farm repeatedly reviewed and reevaluated its own investigative facts as well as those provided by Brechbill, it is not liable for a tortious failure to investigate." The Supreme Court reversed the trial court's judgment and remanded the case for further proceedings.View "State Farm Fire and Casualty Company v. Brechbill " on Justia Law

Petitioner had health care insurance as a member of the United Healthcare Select HMO (the HMO) when he visited a healthcare provider (GCM) for an x-ray of his knee. After Petitioner paid a bill he received from GCM for the x-ray exam he filed a complaint alleging that the bills GCM sent Petitioner were an illegal attempt to "balance bill" an HMO member in violation of State law and that the bills constituted an unfair and deceptive practice in violation of the Consumer Protection Act (the Act). The circuit court dismissed the complaint. The court of special appeals affirmed. The Court of Appeals affirmed in part and reversed in part, holding (1) the state HMO law prohibiting balance billing by health care providers as part of the legal foundation for the establishment of HMOs does not include a right of action by an HMO member against a healthcare provider for violation of that prohibition; but (2) an HMO member may bring an action under the Act against a healthcare provider who improperly bills the member in violation of the state HMO law in a way that also violates the prohibition against unfair or deceptive trade practices in the Act.View "Scull v. Groover, Christie, & Merritt, P.C." on Justia Law

Plaintiffs were tenants in apartment complexes owned or managed by the corporate defendants. Plaintiffs' leases included a provision providing that, if attorneys' service were required due to the tenant's failure to pay rent, then the tenant must pay $400 in attorneys' fees if a court appearance was required and $200 if the matter was resolved without a court appearance. The tenant was also required to pay actual attorneys' fees in excess of $400. Eviction actions were brought against each plaintiff for the non-payment of rent. Plaintiffs filed a complaint against the corporate defendants and the individual defendant alleging violations of the Anti-Eviction Act, violations of the Consumer Fraud Act (CFA), and negligence. The issue on appeal to the Supreme Court in this case was the sufficiency of plaintiffs' pleading as it related to claims against corporate and individual defendants for consumer fraud and negligence based on lease provisions that imposed fixed attorneys’ fees on tenants that were unrelated to in-house counsel’s actual fee to evict. Applying the indulgent standard used to review motions for dismissal under Rule 4:6-2(e), the Supreme Court concluded plaintiffs alleged sufficient facts to state causes of action against the corporate defendants for consumer fraud and negligence. Plaintiffs have not, however, alleged sufficient facts to support a consumer fraud or negligence claim against the individual defendant. View "Green v. Morgan Properties" on Justia Law

Plaintiffs sued defendant Swim-Well Pools, Inc., and others alleging various claims arising out of the installation of a pool. The issue before the Supreme Court in this case centered on whether plaintiffs, whose pretrial motion for partial summary judgment was granted on the issue of a technical violation of the New Jersey Consumer Fraud Act but was denied on the issue of ascertainable loss, could recover attorneys' fees after their CFA claim was involuntarily dismissed. Upon careful review, the Supreme Court concluded that when a trial court grants a defendant's motion for involuntary dismissal of plaintiffs' CFA claim, no bona fide ascertainable loss claim exists, and plaintiffs are not entitled to attorney's fees. View "Perez v. Professionally Green, LLC" on Justia Law

In a matter of first impression, the Supreme Court was asked to determine if an unsuccessful party in an arbitration proceeding could prevent the confirmation of an award by paying the award prior to the confirmation proceeding. Diane Henderson filed an action against Summerville Ford-Mercury, Inc. alleging the dealer made misrepresentations to her when she purchased a used vehicle. The circuit court granted the dealer's motion to compel arbitration, and an arbitrator found for Henderson on her claims for violation of the South Carolina Unfair Trade Practices Act and the South Carolina Regulation of Manufacturers, Distributors, and Dealers Act. Henderson moved to confirm the arbitration award, which was granted by the circuit court. The dealer appealed, arguing the circuit court erred: (1) in rejecting its assertion that payment of the award mooted the request for confirmation, leaving no "justiciable controversy"; and alternatively (2) in applying the provision for confirming awards contained in the South Carolina Uniform Arbitration Act ("UAA"), rather than the Federal Arbitration Act ("FAA"). Upon review, the Supreme Court concluded the unsuccessful party could not prevent confirmation of the award by paying it before confirmation. View "Henderson v. Summerville Ford-Mercury" on Justia Law

Appellant Richard Hoover appealed the dismissal of his individual and class action lawsuit against defendants doing business as St. John's Mercy Medical Center. He asserted that the trial court erred in dismissing his petition because it sufficiently stated a cause of action. Finding that Appellant's complaint indeed did sufficiently state a cause of action, the Supreme Court reversed the trial court and remanded the case for further proceedings.View "Hoover vs. Mercy Health" on Justia Law

Bobby Bell filed an action in small claims court against Pro Tune Plus for damages to his vehicle. Pro Tune responded to the claim, and filed the correct documents to remove the action to the district court. After Bell attempted to amend his claim in the district court, the district court remanded the case to small claims court because it appeared that the claim affidavit and answer from small claims had not been filed with the district court as required by N.D.C.C. 27-08.1-04. Bell moved under N.D.R.Civ.P. 60(a) to correct the record because the clerk had apparently mistakenly failed to file the documents for removal. Bell asked the district court to vacate its order for remand. The district court denied Bell's motion to correct the record, holding Bell did not have a right to remove the action to the district court and, because Pro Tune did not oppose remand, Bell would need to seek dismissal without prejudice from the small claims court in order to return to the district court. Bell then appealed the district court's order remanding the case to small claims court. Upon review, the Supreme Court reversed and remanded, concluding the district court erred by remanding the case to small claims court. "Once the action is properly before the district court, the defendant does not have the option to choose whether or not to remand the case to small claims court. Just as the plaintiff's decision to proceed in small claims court is irrevocable, so is the defendant's decision to remove the action to district court. The district court did not have the authority to decline jurisdiction over an action properly before it."View "Bell v. Pro Tune Plus" on Justia Law

Plaintiffs obtained loans from Defendant, a bank. Plaintiffs later, on behalf of themselves and all those similarly situated, filed a complaint alleging that Defendant's loan transactions violated North Carolina's unfair and deceptive practices statute. Specifically, Plaintiffs alleged that they paid loan discount fees but did not receive discounted loans and that the fees they were charged in connection with origination of their loans were unnecessary and unreasonable. The trial court granted partial summary judgment for Plaintiffs on their loan discount claims and excessive pricing claims under N.C. Gen. Stat. 75-1.1. The court of appeals affirmed entry of summary judgment on Plaintiffs' loan discount claims but reversed the grant of summary judgment on the excessive fees claims. The Supreme Court reversed, holding (1) issues of material fact existed in regards to Plaintiffs' loan discount claims; and (2) Plaintiffs' excessive pricing claims were not recognized by section 75-1.1. Remanded.View "Bumpers v. Cmty. Bank of N. Va." on Justia Law