Justia Consumer Law Opinion Summaries

The plaintiffs, a group of consumers, filed a lawsuit against General Motors (GM) and Robert Bosch LLC, alleging that the companies misled consumers about the emissions produced by certain Chevrolet Cruze vehicles. They claimed that the vehicles emitted higher levels of nitrogen oxides (NOx) than advertised and that the emissions control systems were manipulated to pass regulatory tests. The plaintiffs sought damages under various state fraud laws and the Racketeer Influenced and Corrupt Organizations (RICO) Act.The United States District Court for the Eastern District of Michigan initially dismissed some of the plaintiffs' claims, ruling that those based on the Environmental Protection Agency (EPA) standards were preempted by the Clean Air Act. The court allowed other claims to proceed, particularly those alleging that GM's advertising misled consumers about the vehicles' emissions. However, after the Sixth Circuit's decision in a similar case (In re Ford Motor Company F-150 and Ranger Truck Fuel Economy Marketing and Sales Practices Litigation), the district court revisited its decision and dismissed the remaining fraud claims, concluding they were preempted by federal law. The court also granted summary judgment to the defendants on the RICO claims.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court held that the district court should determine whether the plaintiffs' remaining claims could proceed without relying on a disagreement with the EPA's determinations. The court remanded the case for the district court to decide if the claims were preempted under the analysis described. The court affirmed the dismissal of the RICO claims and the denial of the plaintiffs' post-judgment motion to vacate the judgment in part and approve a preliminary settlement agreement. The case was remanded for further proceedings consistent with the opinion. View "Counts v. General Motors, LLC" on Justia Law

The case involves Ma Shun Bell, who filed a lawsuit against the law firm Friedman, Framme & Thrush (FFT), formerly known as Weinstock, Friedman & Friedman, alleging unfair trade practices and abuse of process. Bell claimed that FFT, representing First Investors Servicing Corporation (FISC), pursued a deficiency debt from her despite knowing it was not lawfully recoverable due to procedural defects in the vehicle repossession process.In the Superior Court of the District of Columbia, Bell's second amended complaint was dismissed. The court ruled that the complaint failed to allege the elements of a Uniform Commercial Code (UCC) violation, that FFT was immune from suit under the Consumer Protection Procedures Act (CPPA) and the D.C. Automobile Financing and Repossession Act (AFRA) due to its role as litigation attorneys, and that the complaint did not articulate how FFT’s conduct violated the Debt Collection Law (DCL). Additionally, the court found that Bell’s claims were barred by res judicata based on a Small Claims Court judgment in favor of FISC, with which FFT was found to be in privity.The District of Columbia Court of Appeals reviewed the case. The court concluded that Bell’s DCL cause of action could proceed, but her other causes of action were properly dismissed. The court held that the Superior Court erred in finding privity between FFT and FISC solely based on their attorney-client relationship and a contingency-fee arrangement. The court determined that the DCL claims were not barred by res judicata or collateral estoppel and that Bell had sufficiently alleged that FFT misrepresented the amount of the debt and charged excessive fees. The court affirmed the dismissal of the UCC, CPPA, and abuse of process claims but reversed the dismissal of the DCL claim, remanding the case for further proceedings. View "Bell v. Weinstock, Friedman & Friedman, PA" on Justia Law

In 2018, Marriott announced a data breach affecting the guest reservation database of Starwood Hotels & Resorts Worldwide, which Marriott had acquired in 2016. The breach exposed personal information of approximately 133.7 million guests, including some payment card information. Plaintiffs filed class action lawsuits against Marriott and Accenture, a third-party IT service provider for Starwood and Marriott during the breach. The cases were consolidated for pretrial proceedings in the District of Maryland.The district court initially certified multiple state-specific damages classes against Marriott and issue classes against both Marriott and Accenture. However, the court did not address the effect of a class-action waiver in the Starwood Preferred Guest Program (SPG) contract, which Marriott argued precluded class certification. The Fourth Circuit vacated the class certification, instructing the district court to consider the class-action waiver's impact.On remand, the district court again certified the classes, holding that Marriott had waived its right to enforce the class-action waiver by participating in multidistrict litigation (MDL) and by agreeing to pretrial proceedings in Maryland, contrary to the SPG contract's venue and choice-of-law provisions. The court also suggested that the class-action waiver might be unenforceable under Rule 23 of the Federal Rules of Civil Procedure.The United States Court of Appeals for the Fourth Circuit reviewed the case and reversed the district court's decision. The Fourth Circuit held that Marriott did not waive its right to enforce the class-action waiver and that the waiver was valid and enforceable. The court found that the waiver applied to the plaintiffs' claims, including consumer protection and negligence claims, as they were related to the SPG Program. Consequently, the court reversed the certification of all classes against Marriott and the issue classes against Accenture, as the latter were justified only in combination with the Marriott damages classes. View "Maldini v. Marriott International, Incorporated" on Justia Law

Plaintiff Khalilah Suluki alleged that her mother, Khadijah Suluki, committed identity theft by opening several credit card accounts in her name without permission, including an account with Credit One Bank, N.A. Upon discovering the alleged fraud, Suluki disputed the account with Credit One and the three major national credit reporting agencies (CRAs). Credit One investigated the dispute multiple times and concluded that the account was legitimate and belonged to Suluki. Suluki filed suit, claiming that Credit One violated the Fair Credit Reporting Act (FCRA) by failing to conduct a reasonable investigation into her dispute.The United States District Court for the Southern District of New York granted summary judgment in favor of Credit One. The court concluded that, regardless of the reasonableness of Credit One's investigation, no reasonable investigation required by the statute would have yielded a different result. The court also found that Suluki did not present any triable issues of fact regarding whether Credit One willfully or negligently violated the FCRA to be liable for damages.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court's judgment. The appellate court agreed that there was a genuine issue of material fact regarding the accuracy of the information reported and the reasonableness of Credit One's investigations. However, it concluded that no reasonable investigation would have led Credit One to determine that the account was fraudulent or that the information was unverifiable. The court also determined that Suluki could not recover damages because she did not present evidence from which a reasonable jury could find that Credit One willfully or negligently violated the FCRA. Thus, the appellate court affirmed the district court's decision. View "Suluki v. Credit One Bank, NA" on Justia Law

M.G. received health care coverage through Medi-Cal and was treated by Dameron Hospital Association (Dameron) after an automobile accident. Dameron required M.G. or her representative to sign a conditions of admissions (COA) form, which included an assignment of benefits (AOB) clause. This clause assigned to Dameron the right to direct payment of uninsured and underinsured motorist (UM) benefits from M.G.'s automobile insurance policy with Progressive Casualty Insurance Company (Progressive). Dameron sought payment from Progressive for M.G.'s treatment at rates higher than Medi-Cal would pay. Progressive settled a UM claim with M.G. but did not pay Dameron, leading Dameron to sue Progressive for damages, an injunction, and declaratory relief.The Superior Court of San Joaquin County sustained a demurrer to Dameron's complaint without leave to amend, citing collateral estoppel based on a prior decision in Dameron Hospital Assn. v. AAA Northern California, Nevada & Utah Ins. Exchange (Dameron v. AAA). The court found the COA forms to be contracts of adhesion and the AOBs unenforceable, as it was not within the reasonable expectations of patients that a hospital would collect payments for emergency care directly from their UM benefits.The California Court of Appeal, Third Appellate District, affirmed the trial court's decision. The appellate court held that the COAs were contracts of adhesion and that it was not within the reasonable expectations of Medi-Cal patients that their UM benefits would be assigned to the hospital for payment of medical bills at rates higher than Medi-Cal would pay. The court concluded that the AOBs were unenforceable and did not need to address arguments regarding collateral estoppel or the Knox-Keene Health Care Service Plan Act. The court also denied Progressive's motion to strike exhibits from Dameron's reply brief. View "Dameron Hospital Assn. v. Progressive Casualty Insurance Co." on Justia Law

The plaintiff, Joshua Naranjo, filed a class action lawsuit against Doctors Medical Center of Modesto, Inc., alleging violations of the unfair competition law (UCL) and the Consumers Legal Remedies Act (CLRA) due to the hospital's practice of charging an undisclosed "Evaluation and Management Services Fee" (EMS Fee) to emergency room patients. Naranjo claimed that the fee was charged without prior notification or agreement, making it an unfair, deceptive, and unlawful practice.The Superior Court of Stanislaus County sustained the hospital's demurrer to each cause of action in Naranjo's first amended complaint (FAC) without leave to amend and entered a judgment of dismissal. Naranjo appealed, and the Court of Appeal initially reversed the judgment, finding that Naranjo had stated valid causes of action under the UCL and CLRA and for declaratory relief. The court also directed the trial court to consider any future motion by Naranjo to amend his FAC to state a breach of contract cause of action.The California Supreme Court granted review and subsequently transferred the case back to the Court of Appeal, directing it to reconsider the matter in light of its ruling in Capito v. San Jose Healthcare System, LP. In Capito, the Supreme Court held that hospitals do not have a duty under the UCL or CLRA to disclose EMS fees to emergency room patients prior to treatment beyond what is required by the statutory and regulatory scheme.Upon reconsideration, the Court of Appeal concluded that Naranjo's claims are barred to the extent they are based on an alleged duty to disclose EMS fees prior to treatment. However, the court found that Naranjo had stated a valid contract-based cause of action for declaratory relief and should be allowed to amend his FAC to state causes of action for breach of contract and violations of the UCL and CLRA, subject to specific parameters. The judgment of dismissal was reversed, and the case was remanded for further proceedings. View "Naranjo v. Doctors Medical Center of Modesto, Inc." on Justia Law

Portfolio Recovery Associates, LLC, a debt purchaser, filed suits against three consumers, Jeannie Duvall, Allease Riddle, and Lorrena Terry, to collect past-due credit card debts. The consumers counterclaimed, alleging that Portfolio's debt-collection practices violated Alaska's Unfair Trade Practices and Consumer Protection Act (UTPA). The superior courts ruled in favor of the consumers on Portfolio's debt-collection claims, finding insufficient admissible evidence to prove Portfolio's ownership of the debts or the amounts owed. The courts also ruled in favor of the consumers on some of their UTPA counterclaims, awarding statutory damages and attorney's fees.In Duvall's case, the superior court granted summary judgment on her UTPA counterclaim that Portfolio sought unauthorized fees and charges, finding Portfolio failed to produce the original credit card agreement. The court excluded a late-disclosed witness and certain documents as inadmissible hearsay. Portfolio's contract claim failed due to lack of evidence. The court awarded Duvall partial attorney's fees under the UTPA and Rule 82.In Riddle's case, the superior court granted summary judgment on her UTPA counterclaim, finding Portfolio lacked standing to sue without proving ownership of the debt. The court awarded Riddle statutory damages and partial attorney's fees, reducing the award due to excessive litigation by both parties.In Terry's case, the superior court ruled in her favor on Portfolio's contract claim and her UTPA counterclaims after a bench trial. The court found Portfolio's conduct unfair and deceptive, awarding Terry statutory damages and full attorney's fees.The Alaska Supreme Court affirmed the superior courts' rulings on the merits and statutory damages. It found no abuse of discretion in the evidentiary rulings or the exclusion of the late-disclosed witness. The court affirmed the attorney's fees award in Duvall, remanded the fees award in Riddle for reconsideration, and remanded the fees award in Terry for a minor correction. View "Portfolio Recovery Associates, LLC v. Duvall" on Justia Law

In 2007, Osman Yunus Guracar took out a private student loan from Bank of America but stopped making payments in 2009. In 2017, Student Loan Solutions, LLC (SLS) purchased the loan and sued Guracar for non-payment in 2022. Guracar filed cross-claims against SLS and others, alleging violations of state and federal debt collection statutes. The cross-defendants moved to strike the cross-claims under California's anti-SLAPP statute, which the trial court granted.The Santa Clara County Superior Court ruled that Guracar's cross-claims arose from protected conduct and triggered the anti-SLAPP statute. The court also found that Guracar failed to show a probability of prevailing on his claims, holding that the loan was an installment debt and that SLS had timely accelerated the loan in June 2022. The court did not address Guracar's argument that the loan had been accelerated in February 2010.The California Court of Appeal, Sixth Appellate District, reviewed the case. The court concluded that Guracar had standing to assert his claims under the Debt Buyers Act, the PSLCRA, the Rosenthal Act, and the FDCPA without showing concrete harm. On the merits, the court found that Guracar established a probability of prevailing on his cross-claims for suing to collect a time-barred debt, making false and misleading representations, and failing to comply with certain PSLCRA requirements. The court reversed the trial court's judgment, reinstating these cross-claims but affirmed the striking of Guracar’s other cross-claims. The case was remanded for further proceedings consistent with these findings. View "Guracar v. Student Loan Solutions" on Justia Law

Yelp, a company that publishes consumer reviews, introduced a notification on its business pages for crisis pregnancy centers (CPCs) in 2022, stating that these centers typically offer limited medical services. After objections from several state Attorneys General, including Texas Attorney General Ken Paxton, Yelp replaced the notice with one stating that CPCs do not offer abortions or abortion referrals. Despite this change, Paxton initiated an investigation and sent Yelp a notice of intent to file suit, alleging that the original notice violated the Texas Deceptive Trade Practices – Consumer Protection Act (DTPA). Yelp then filed a lawsuit in federal court, claiming First Amendment retaliation, and sought to enjoin Paxton from further action. The next day, Paxton filed a state court action against Yelp.The United States District Court for the Northern District of California dismissed Yelp’s federal case based on the Younger abstention doctrine, which prevents federal courts from interfering with ongoing state judicial proceedings. The district court found that the requirements for Younger abstention were met and that the bad faith exception did not apply.The United States Court of Appeals for the Ninth Circuit affirmed the district court’s dismissal. The Ninth Circuit held that Younger’s bad faith exception did not apply because Yelp had not sufficiently established that the Texas civil enforcement action was brought without a reasonable expectation of obtaining a valid judgment or was facially meritless. The court also found that Yelp failed to show that Paxton’s enforcement action was motivated by a desire to harass or retaliate against Yelp for its support of abortion rights. The court concluded that the district court did not err in denying Yelp’s request for discovery and an evidentiary hearing. View "YELP INC. V. PAXTON" on Justia Law

Petitioners were defrauded by a now-defunct corporation that sold them long-term health care and estate planning services they never received. Unable to obtain compensation directly from the corporation, petitioners secured a federal bankruptcy court judgment against the corporation and applied for restitution from the Victims of Corporate Fraud Compensation Fund. The Secretary of State, who administers the Fund, denied their applications, leading petitioners to file a verified petition in the superior court for an order directing payment from the Fund. The superior court granted the petition, and the Secretary appealed.The superior court found that the bankruptcy court judgment was a qualifying judgment for compensation under the Fund. The court noted that the complaint contained allegations of fraud and requested a judgment finding the elements of fraud under California law were satisfied. The superior court also found that the administrative record contained ample evidence supporting the bankruptcy court’s default judgment against the corporation for fraud.The California Court of Appeal, Second Appellate District, reviewed the case. The court concluded that the bankruptcy court’s final judgment, which expressly adjudged petitioners as victims of intentional misrepresentation, met the Fund’s requirement for a judgment based on fraud. The court affirmed the superior court’s judgment regarding petitioners' entitlement to payment from the Fund. However, it reversed and remanded the case for the superior court to specify the amount the Secretary shall pay each petitioner, as the original order did not account for the statutory limit of $50,000 per claimant and the need to consider spouses as a single claimant. View "Alves v. Weber" on Justia Law