Justia Consumer Law Opinion Summaries

Petitioner filed a complaint against Respondent for unfair and deceptive trade practices and for common law fraud. Petitioner's complaint was based on an automobile warranty he purchased from Respondent that expired more than two years earlier than he had been led to believe. Petitioner purported to bring his action on behalf of others similarly situated. Before Petitioner filed a motion to certify the class, however, Respondent paid to extend Petitioner's warranty. The circuit court (1) denied Petitioner's motion for class certification, finding that because he had been made whole, Petitioner was no longer a member of any class; (2) granted in part Respondent's motion for summary judgment, finding Petitioner's claim moot; and (3) granted Petitioner attorney's fees for the period before and after Respondent tendered Petitioner individual relief. The Court of Appeals affirmed in part and reversed in part, holding (1) Respondent's tender of individual compensatory relief to Petitioner did not require the court to deny class certification; (2) an award of punitive damages is not foreclosed by the tender of individual compensatory damages; and (3) an award of attorney's fees to Petitioner under a fee-shifting provision of the Consumer Protection Act is not limited to fees incurred before the tender. View "Frazier v. Castle Ford, Ltd." on Justia Law

On behalf of himself and a proposed class of others similarly situated, Plaintiff filed an action challenging the legality of Ticketmaster's collection of a service charge on a concert ticket he purchased for a concert in the city. The complaint was based on provisions of the Baltimore City Code. The Supreme Court accepted certification to answer questions of law and held (1) if a ticket agency is authorized in writing by a licensed exhibitor to sell tickets as an agent of the exhibitor, the ticket agency is not required to be licensed; (2) the Code prohibits the collection of a service charge, in addition to the established price printed on the ticket, in connection with the original sale of the ticket by the exhibitor, and is not limited to ticket resales; (3) the Code does not permit anyone other than a ticket agency licensed under the Code to collect anything more for a ticket than the established price printed on the ticket plus taxes; and (4) a common law action for money had and received will lie to recover money paid in excess of that allowed by statute if the agreement pursuant to which it has been paid has not been fully consummated. View "Bourgeois v. Live Nation Entm't, Inc." on Justia Law

Plaintiffs, a car owner and the purchaser of that car, filed suit against Advance Stores, which supplied a car battery to the original owner. The battery died shortly after the second owner purchased the car, and Advance Stores refused to provide a free replacement under the limited warranty. After the Supreme Court answered a certified question and remanded the case, the trial court allowed Plaintiffs to amend the complaint to add an additional cause of action for violation of the Magnuson-Moss Warranty Act (Act). Advance Stores moved to dismiss the third amended complaint. The trial court denied the motion in part and allowed the third amended complaint to go forward on new theories. Thereafter, Advance Stores filed this petition for a writ of prohibition, asserting that the circuit court ignored the mandate of the Supreme Court in McMahon I. The Supreme Court granted the writ and directed the circuit court to grant in full Advance Stores' motion to dismiss the third amended complaint, holding that in failing to present a claim under the Act in McMahon I, Plaintiffs were precluded from amending their complaint to assert the claim under the limited remand. View "State ex rel. Advance Stores Co. v. Circuit Court" on Justia Law

Homeowners obtained a default judgment against an LLC. Although the LLC's manager (Manager) was listed as an individual defendant, the default was only against the LLC. A partial satisfaction of the judgment was later entered. Afterwards, the trial court issued an order stating that any other claims against Manager were dismissed with prejudice. Later, LLC unsuccessfully challenged the amount of the partial satisfaction of judgment. Thereafter, Manager, individually and on behalf of the LLC, filed a notice of appeal appealing four separate orders made in the case. Homeowners moved to dismiss, arguing that the appeal was untimely, Manager was not an attorney and could not represent the LLC, and Manager was not an aggrieved party. The Supreme Court dismissed the appeal, holding (1) the appeal of three of the orders was untimely; (2) a non-licensed attorney is not permitted to appear pro se to represent an LLC; and (3) because all of the claims against Manager were dismissed, he was not an aggrieved party and could not appeal the remaining order, the partial satisfaction of judgment order. View "Smith v. Rustic Home Builders, LLC" on Justia Law

Plaintiffs sued Wells Fargo for fraudulent misrepresentation and promissory estoppel after Wells Fargo initiated foreclosure when plaintiffs stopped paying on their mortgage loan. The court held that plaintiffs have not stated a plausible claim for fraudulent misrepresentation regarding the modification of their home loan and therefore, the district court did not err in dismissing plaintiffs' claims under Rules 12(b)(6) and 9(b). The court also held that plaintiffs have not stated a plausible claim for promissory estoppel and the district court did not err in dismissing their claim. View "Freitas, et al v. Wells Fargo Home Mortgage, Inc." on Justia Law

Klie purchased property with financing from Coldwell Banker, which assigned its rights to the Federal National Mortgage Corporation (Fannie Mae) but continued to service the loan. The assignment was never recorded. In 2007, servicing rights transferred to JP Morgan. Coldwell Banker assigned its rights in the note and mortgage (none) to JP Morgan, which reassigned to Fannie Mae. Chase, an arm of JP Morgan, serviced the loan until Klie died. With the loan in default, Chase’s law firm, RACJ, prepared an assignment of the note and mortgage that purported to establish Chase’s right to foreclose and filed a foreclosure actionf, naming Glazer, a beneficiary of Klie’s estate. The court entered a decree of foreclosure, but later vacated and demanded that RACJ produce the original note. Chase dismissed the foreclosure without prejudice. Glazer filed suit, alleging that Chase and RACJ violated the Fair Debt Collection Practices Act, 15 U.S.C. 1692, and Ohio law by falsely stating that Chase owned the note and mortgage, improperly scheduling a foreclosure sale, and refusing to verify the debt upon request. Chase and RACJ moved to dismiss. The district court dismissed. The Sixth Circuit reversed, holding that mortgage foreclosure is debt collection under the Act. View "Glazer v. Chase Home Fin. LLC" on Justia Law

Prime Motor Cars sold Seacoast RV, Inc. a car. The car had modifications that voided the manufacturer's warranty and caused mechanical problems that may not have been apparent when the car was sold because the "check engine" light was covered with opaque tape. Seacoast filed a complaint against Prime, alleging breach of contract, breach of warranty, fraud, violation of the Maine Unfair Trade Practices Act (UTPA), and punitive damages. The district court granted Prime's motion for judgment as a matter of law on the UTPA and punitive damages claims. The court then concluded that Prime's conduct constituted breach of contract and breach of warranty, but found against Seacoast on the fraud claim. The court rescinded the contract and ordered Prime to refund Seacoast and Seacoast to return the vehicle to Prime. The Supreme Court affirmed, holding that the district court did not err in its judgment. View "Seacoast RV, Inc. v. Sawdran, LLC" on Justia Law

Plaintiff, a resident of Arizona, sued Defendant, a foreign corporation that operates in Florida, after he contracted to buy an aircraft from Defendant but Defendant failed to deliver the aircraft. The U.S. district court applied Florida with respect to some of Plaintiff's claims and applied Arizona law to the remainder of the claims. The court also denied Defendant's motion for attorney's fees under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA). On appeal, the Eleventh Circuit certified several questions to the Florida Supreme Court. The Court answered (1) because Plaintiff invoked FDUTPA by filing an action asserting a claim seeking recovery under FDUTPA in which Defendant ultimately prevailed, Defendant was entitled to attorney's fees under FDUPTA; (2) Defendant was entitled to fees for only the period of litigation until the federal district court held that FDUPTA did not apply to Plaintiff's claim; (3) Florida's offer of judgment statute does not apply to cases that seek both equitable relief and damages and in which Defendant has served an offer of judgment that seeks release of all claims; and (4) even if Florida's offer of judgment statute applied in this case, Defendant would not be entitled to attorney's fees under that section. View "Diamond Aircraft Indus., Inc. v. Horowitch" on Justia Law

Plaintiffs Kathleen and Terry Kirch appealed the district court's grant of summary judgment in favor of Defendants United Telephone Company of Eastern Kansas and Embarq Management Company (collectively "Embarq") on their claim that Embarq intercepted their Internet communications in violation of the Electronic Communications Privacy Act of 1986 (ECPA). Embarq is an Internet service provider (ISP). The alleged interceptions occurred when Embarq authorized NebuAd, Inc., an online advertising company, to conduct a technology test for directing online advertising to the users most likely to be interested in the ads. The Tenth Circuit affirmed the grant of summary judgment: "Although NebuAd acquired various information about Embarq users during the course of the technology test, Embarq cannot be liable as an aider and abettor. And it was undisputed that Embarq's access to that information was no different from its access to any other data flowing over its network. Because this access was only in the ordinary course of providing Internet services as an ISP, this access did not constitute an interception within the meaning of the statute." View "Kirch v. Embarq Management Co." on Justia Law

Respondent purchased a luxury sports car from Desert Audi. Defendant contracted with Nex-Day Auto Transport, Inc. to facilitate delivery of the vehicle to Washington. Nex-Day negotiated with Dynamic Transit Company/Knights Company (Knights) for delivery of the vehicle. Knights picked up the car, transported it to Washington, but demanded that Nex-Day tender payment for its unrelated past-due invoices before it would proceed with the delivery. Nex-Day failed to do so, and Knights refused to deliver Respondent's vehicle. Respondent brought an action against Knights, alleging various state-law claims. After filing its answer, Knights filed a motion to dismiss Respondent's complaint, asserting that Respondent's state-law claims were preempted by the Carmack Amendment's federal liability limitation for interstate cargo carriers. The district court concluded that the Carmack Amendment was inapplicable and denied Knights' motion. The district court then granted judgment in Respondent's favor. The Supreme Court affirmed, holding (1) the district court properly denied Knights' motion to dismiss; (2) substantial evidence supported the district court's judgment; and (3) the district court's award of damages was proper. View "Dynamic Transit v. Trans Pac. Ventures" on Justia Law