Justia Consumer Law Opinion Summaries

After plaintiffs' house was sold at a non-judicial foreclosure sale, they sued the lender, the holder of the Deed of Trust at the time of the sale, and the successor trustee. The district court granted defendants' motion to dismiss. The court affirmed, concluding that plaintiffs lacked standing to challenge the Fannie Mae designation; the foreclosure sale's procedures complied with Missouri law; the district court properly ruled that plaintiffs' challenged to activities after the foreclosure sale lacked standing; the district court did not err in dismissing plaintiffs' breach-of-fiduciary-duty claim; and the district court did not err in deciding that plaintiffs had failed to plead facts that proved a duty to investigate the transaction on the part of the fiduciary trustee. View "Hallquist, et al v. United Home Loan, et al" on Justia Law

Objectors appealed the district court's orders granting final approval to a class action settlement between HP and a nationwide class of consumers who purchased certain HP inkjet printers between certain dates. Under section 1712 of the Class Action Fairness Act, 28 U.S.C. 1712(a)-(c), a district court could not award attorneys' fees to class counsel that were "attributable to" an award of coupons without first considering the redemption value of the coupons. A district court could, however, award lodestar fees to compensate class counsel for any non-coupon relief they obtained, such as injunctive relief. Because the attorneys' fees award in this case violated section 1712, the court reversed and remanded to the district court for further proceedings. View "In re: HP Inkjet Printer Litigation" on Justia Law

After a bench trial, the federal district court found that Appellant Maggie Chapman violated the "assisting and facilitating" provision of the Telemarketing Sales Rule, 16 C.F.R. 310.3(b). A consumer protection action was brought by the Federal Trade Commission and four states against several individual and corporate defendants who marketed and sold to consumers grant-related goods and services with false representations that the consumers were guaranteed or likely to receive grants. After the claims against the other defendants were settled or adjudicated by entry of summary judgment, the district court held a bench trial on the remaining claim against Ms. Chapman. Following the trial, the court found that Ms. Chapman violated the Telemarketing Sales Rule by providing substantial assistance to telemarketing defendants while knowing or consciously avoiding knowing of their deceptive telemarketing practices. The court accordingly ordered a permanent injunction and $1,682,950 in monetary damages against Ms. Chapman. The court also denied Ms. Chapman's post-judgment motion to alter or amend the judgment or, alternatively, for remittitur. Ms. Chapman appealed both the finding she violated the Telemarketing Sales Rule and the denial of her post-judgment motion. Not persuaded that the district court's underlying factual findings were clearly erroneous, and concluding that the district court did not abuse its discretion in denying Ms. Chapman's post-judgment motion, the Tenth Circuit affirmed the lower court's decision. View "Fed. Trade Comm'n v. Chapman" on Justia Law

Plaintiffs appealed from the district court's dismissal of their Second Amended Class Action Complaint pursuant to Rule 12(b)(6). Plaintiffs challenged the veracity of certain advertisements in which Time Warner allegedly described its Road Runner Internet service. Plaintiffs asserted that Time Warner's allegedly deceptive advertisements violated New York General Business Law 349 and various California consumer protection statutes, and gave rise to claims for common law fraud, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. The court concluded that the allegations of the Complaint were materially inconsistent with the sole advertisement plaintiffs have submitted. Therefore, the court concluded that plaintiffs' claims lacked the facial plausibility necessary to survive a motion to dismiss. Accordingly, the court affirmed the judgment. View "Fink v. Time Warner Cable" on Justia Law

Plaintiff, seeking damages and declaratory relief, brought a diversity action against two national banking associations, alleging violations of Louisiana consumer protection law in connection with a mortgage foreclosure proceeding. The district court dismissed the action in part pursuant to the Rooker-Feldman doctrine and in part for failure to state a claim of a statutory exemption under Louisiana law. The court concluded that the district court had jurisdiction to hear plaintiff's claims, which were "independent claims" for Rooker-Feldman purposes. However, plaintiff's complaint must be dismissed nonetheless for failure to state a claim where the Louisiana consumer protection law did not provide plaintiff with an avenue of relief because both banks were exempt and where plaintiff had not disputed that her declaratory judgment could be dismissed under Louisiana's preclusion principles. Accordingly, the court affirmed the judgment. View "Truong v. Bank of America, N.A., et al" on Justia Law

Plaintiffs appealed from the district court's dismissal of their claims in connection with the design, manufacture, and sale by Philip Morris of cigarettes that allegedly contained unnecessarily dangerous levels of carcinogens when smoked by humans, and plaintiffs' independent equitable claim seeking to require Philip Morris to fund a program of medical monitoring for longtime smokers of Marlboro cigarettes who have not been diagnosed with, but were at risk for, lung cancer. The court concluded that the district court properly dismissed plaintiffs' claims for negligence and strict products liability as time barred by the applicable statute of limitations. Further, the implied warranty of merchantability was not breached if the cigarettes were minimally safe when used in the customary, usual, and reasonably foreseeable manner and, therefore, summary judgment dismissing these claims was appropriate. With respect to the claim seeking medical monitoring, the court certified a question of law to the New York Court of Appeals. View "Caronia v. Philip Morris USA" on Justia Law

Country Vintner sued Gallo, under North Carolina law over the wholesale distribution of an Argentinian wine. At issue on appeal was what expenses related to electronically stored information (ESI) were taxable under the federal taxation-of-costs statute, 28 U.S.C. 1920(4). The district court entered an order taxing only the costs of converting electronic files to non-editable formats, and transferring files onto CDs. The court agreed with the district court's finding that only the conversion of native files to TIFF and PDF formats, and the transfers of files onto CDs, constituted "making copies" under section 1920(f), and that none of Gallo's expenses constituted fees for exemplification. View "The Country Vintner v. E & J Gallo Winery" on Justia Law

In 2010, the New Bedford district court entered a default judgment against Plaintiff, a resident of New Bedford, Massachusetts and an employee of the U.S. Department of the Interior (Department), in a suit filed by Law Firm to recover a consumer debt. In 2011, Law Firm brought a second suit in Attleboro district court seeking to collect on the default judgment by attaching Plaintiff's wages from the Department, via trustee process. Attleboro was one of the locations in which the Department maintained a usual place of business. In 2010, Plaintiff filed this action alleging that Law Firm violated the Fair Debt Collection Practices Act venue provision when it brought the 2011 Attleboro suit in a district other than the one in which she resided or signed the underlying contract. The district court granted Law Firm's motion to dismiss. The First Circuit Court of Appeals affirmed, holding that Plaintiff's claim was baseless in that it ignored Massachusetts trustee process law. View "Smith v. Solomon & Solomon, P.C." on Justia Law

This case stemmed from plaintiffs' allegations that defendants issued consumer credit reports with negative entries for debts already discharged in bankruptcy. On appeal, plaintiffs and objectors challenged the district court's approval of a class-action settlement that granted incentive awards to the class representatives for their services to the class. The settlement agreement conditioned payment of incentive awards on the class representatives' support for the settlement. These conditional incentive awards caused the interests of the class representatives to diverge from the interests of the class because the settlement agreement told class representatives that they would not receive incentive awards unless they supported the settlement. Moreover, the conditional incentive awards significantly exceeded in amount what absent class members could expect to get upon settlement approval. Because these circumstances created a patent divergence of interests between the named representatives and the class, the court concluded that the class representatives and class counsel did not adequately represent the absent class members. Therefore, the court reversed the district court's approval of the settlement. View "Radcliffe v. Experian Info. Solutions" on Justia Law

Plaintiffs filed suit against Wells Fargo after plaintiffs' application for a mortgage modification under the Home Affordable Modification Program (HAMP) was denied. The district court concluded that plaintiffs had failed to state a claim upon which relief could be granted and therefore granted Wells Fargo's motion to dismiss. The court concluded that plaintiffs have not plausibly stated a breach of contract claim; plaintiffs' negligence claim failed because there was no express or implied contract and therefore, no tort duty could arise as a matter of law; plaintiffs' Maryland Consumer Protection Act, Md. Code Ann., Com. Law 13-301(1), claim failed because Wells Fargo did not make misrepresentations when it stated that it needed more information to process plaintiffs' HAMP application; and the district court court properly dismissed the negligent misrepresentation and common law fraud claim. Accordingly, the court affirmed the judgment. View "Spaulding v. Wells Fargo Bank, N.A." on Justia Law