Justia Consumer Law Opinion Summaries

The Supreme Court reversed the rulings of the circuit court denying Bridgecrest Acceptance Corporation's motions to dismiss or stay the counterclaims against it and to compel the matters to arbitration pursuant to an arbitration agreement, holding that the arbitration agreement was legally valid, conscionable, and not precluded by collateral estoppel.In two separate cases, Bridgecrest sought a deficiency judgment against consumers who had defaulted on car payments. The consumers brought counterclaims, raising putative class claims for unlawful and deceptive business practices. Bridgecrest moved to stay or dismiss the consumers' counterclaims and compel arbitration pursuant to the arbitration agreements signed by the consumers when buying their vehicles. The circuit court overruled the motions in both cases. The Supreme Court reversed, holding that the circuit court erred in refusing to compel arbitration. View "Bridgecrest Acceptance Corp. v. Donaldson" on Justia Law

The Supreme Court affirmed the order of the district court granting summary judgment to ERA Advantage Realty, Inc. and dismissing Jodie Young's complaint alleging that Advantage's brokers were negligent in failing to disclose certain issues when she was buying her home, holding that the district court did not abuse its discretion.In her complaint, Young alleged negligence because Advantage's brokers failed to disclose that local zoning ordinances preluded her from enclosing her yard with a fence and constructive fraud for failure to disclose a mold problem in her basement. The district court granted summary judgment to Advantage, holding that Young could not sustain her claims because she failed to submit notice of a real estate expert who could establish the standard of care applicable to real estate agents. The Supreme Court affirmed, holding that Young's duty-based claims failed as a matter of law and that this conclusion was dispositive. View "Young v. Era Advantage Realty" on Justia Law

Several years ago, law firm Lueder, Larkin & Hunter represented the Pine Grove Homeowners Association in lawsuits seeking to collect delinquent fees from homeowners. One homeowner settled, and eventually Pine Grove voluntarily dismissed the other two suits. The homeowners then sued Lueder, Larkin & Hunter, arguing in state court that the law firm’s actions violated the Fair Debt Collection Practices Act (“FDCPA”). The firm removed the cases to federal court, where they were consolidated before a magistrate judge. After reviewing the complaints, the firm became convinced that the FDCPA claims filed against it were “unsubstantiated and frivolous”—meaning that the homeowners’ attorney had committed sanctionable conduct. The firm served the homeowners’ counsel with draft motions for Rule 11 sanctions.   The law firm appealed the denial of sanctions, and the homeowners appealed the summary judgment decision. The Eleventh Circuit affirmed the district court’s grant of summary judgment and vacated its denial of the Rule 11 motions. The court explained that it has long held that Rule 11 motions “are not barred if filed after a dismissal order, or after entry of judgment,” though it is apparently necessary to clarify that point in light of later cases. The homeowners claim that a later case, Walker, changed the Eleventh Circuit’s law. The court, looking at the relevant cases together, held that the reconciled rule follows: If a party fulfills the safe harbor requirement by serving a Rule 11 sanctions motion at least 21 days before final judgment, then she may file that motion after the judgment is entered and Lueder, Larkin & Hunter satisfied this rule. View "Wilbur Huggins v. Lueder, Larkin & Hunter, LLC" on Justia Law

The plaintiff alleged that after being treated at the defendant’s emergency room, he was billed an evaluation and management services (EMS) fee in addition to the charges for individual items of service and treatment. His total charges of $4,593 (before discounts) included the undisclosed EMS Fee of $2,811. He argued that the EMS Fee was charged to patients simply for being seen in the emergency room and is not visibly posted on signage in or around emergency rooms or at its registration windows/desks.The court of appeal affirmed the dismissal of his third amended complaint, alleging violation of the Consumers Legal Remedies Act (CLRA) (Civ. Code 1750). The court noted that another division of the court of appeals recently held that identical allegations do not state a cause of action under the CLRA. The plaintiff acknowledged the hospital’s compliance with California’s “Payers’ Bill of Rights,” Health and Safety Code 1339.50, by listing the EMS Fee in its chargemaster, which is published on defendant’s website. There is no duty to make an additional disclosure of the EMS Fee in light of the public policy reflected in federal and state statutes that emergency room care be provided to patients without delay or questioning about their ability to pay. View "Saini v. Sutter Health" on Justia Law

Defendant-Appellant U.S. Department of Homeland Security (“DHS”) appealed the judgment of the district court ordering the U.S. Secret Service, a component of DHS, to release certain records that Plaintiff-Appellee requested under the Freedom of Information Act (“FOIA”), 5 U.S.C. Section 552.   The Second Circuit reversed the judgment of the district court on two grounds. First, the records are not “agency records” subject to the FOIA. Second, even if the records were eligible for disclosure under the FOIA, Exemption 7(C), 5 U.S.C. Sec. 552(b)(7)(C), would shield the records from disclosure. The court explained that the Secret Service obtained records from the campaign and transition subject to an understanding of confidentiality in order to provide security services to the presidential candidate and President-elect. Under these circumstances, the agency did not exercise control sufficient to convert the records into agency records subject to disclosure under the FOIA. View "Behar v. Dep't of Homeland Sec." on Justia Law

Charles and Tracy Lamirand took out a mortgage loan to buy a home in Florida but did not keep up with the payments. After they defaulted, the loan servicer sued to foreclose on the home. While the foreclosure suit was pending, Fay Servicing took over the loan. A disagreement arose, leading the Lamirands to sue Fay Servicing. The parties soon settled both lawsuits and agreed that the Lamirands owed $85,790.99 on the loan, to be paid in one year. But four months later, Fay Servicing sent the Lamirands a mortgage statement notifying them that their loan had “been accelerated” because they were “late on [their] monthly payments.” On Fay Servicing’s fast-tracked timetable, the Lamirands owed $92,789.55 to be paid in a month. If they did not pay, Fay Servicing’s statement warned, they risked more fees and even “the loss of [their] home to a foreclosure sale.” The statement then detailed many ways the Lamirands might pay. The statements distressed the Lamirands, who thought they needed to pay only $85,790.99 and make that payment by the date set in the settlement agreement. They eventually sued, alleging that by sending the statements Fay Servicing had violated the FDCPA and Florida’s Consumer Collection Practices Act. To the district court, the periodic statements were unrelated to debt collection, even though they urged the Lamirands to make their past-due loan payments, because Fay Servicing was required to send monthly updates under the Truth in Lending Act. The court thus held that the Lamirands had not stated an FDCPA claim, declined to exercise supplemental jurisdiction over the Florida law claims, and dismissed the complaint. The Eleventh Circuit Court of Appeals found a periodic statement mandated by the Truth in Lending Act could also be a debt-collection communication covered by the FDCPA. Because the complaint here plausibly alleged the periodic statements sent to the plaintiffs aimed to collect their debt, the district court’s dismissal of their complaint was reversed. View "Lamirand, et al v. Fay Servicing, LLC" on Justia Law

The Supreme Court answered a certified question of law by holding that a plaintiff is not damaged for purposes of a common-law fraudulent concealment claim or a Nev. Rev. Stat. 41.600 consumer fraud claim when the plaintiff receives the true value of the good or service purchased.The United States Court of Appeals for the Ninth Circuit asked the Supreme Court to determine whether a plaintiff has suffered damages for purposes of common-law fraudulent concealment and statutory consumer fraud claims if the defendant's actions caused the plaintiff to purchase a service or product the Plaintiff would not otherwise have purchased even if the value of that service or product was at least equal to what the plaintiff paid. The Supreme Court concluded that a plaintiff who receives the true value of the services or goods purchased has not suffered damages under Nev. Rev. Stat. 41.600 or under theories of common-law fraudulent concealment. View "Leigh-Pink v. Rio Properties, LLC" on Justia Law

Plaintiff and his counsel, Anderson + Wanca (“Wanca”), appealed the district court’s denial of their motion for Wanca to receive a portion of the attorneys’ fees resulting from the settlement of a class-action lawsuit brought under the Telephone Consumer Protection Act of 1991 (“TCPA”), 47 U.S.C. Section 227. Wanca, while not appointed as class counsel in this case, began the chain of litigation that resulted in the settlement below and so contends that it provided a substantial and independent benefit to the class justifying a portion of the attorneys’ fees.   The Eleventh Circuit affirmed the district court’s ruling. The court explained that while the court did find that Wanca has shown it provided one substantial and independent benefit to the class, Wanca’s prioritization of its interests over the class’s interests throughout the litigation forecloses the equitable relief Wanca seeks.   The court explained that non-class counsel is generally entitled to a portion of a common fund recovered in a class action as attorneys’ fees under Rule 23(h) if non-class counsel confers a substantial and independent benefit to the class that aids in the recovery or improvement of the common fund.  Here, the mere fact that Wanca devoted substantial time and effort to litigating this class action does not entitle Wanca to attorneys’ fees. Simply put, most of the 671.95 hours Wanca spent litigating Arkin I and II did not aid in the recovery or improvement of the common fund obtained under the Pressman Settlement in Arkin III. View "Steven Arkin, et al. v. Smith Medical Partners, LLC, et al." on Justia Law

American Express National Bank (“AmEx”) filed suit for breach of contract in Mississippi state court to recover $2,855.74 of unpaid credit card debt incurred on Plaintiff's account. Plaintiff contended an unknown person incurred this debt fraudulently. Plaintiff then filed Fair Credit Reporting Act (“FCRA”) claims against AmEx and other defendants in Mississippi state court. The district court denied AmEx’s motion to compel arbitration.   The Fifth Circuit vacated the decision of the district court and remanded for reconsideration in the first instance in light of Forby v. One Techs., L.P and Morgan v. Sundance, Inc. The court held that these cases were decided on the same day and after the district court’s ruling. Forby clarified the test for waiver by a party of the right to compel arbitration and reiterated that waiver analysis occurs on a claim-by-claim basis. In addition, Morgan addressed this and other sister circuits’ tests for waiver by a party of the right to compel arbitration. The court explained that although it can apply subsequent precedent to cases before it, “[a]s a court for review of errors, we are not to decide facts or make legal conclusions in the first instance." Thus, the court’s task is to review the actions of a trial court for claimed errors. View "Barnett v. American Express National" on Justia Law

The Supreme Court reversed the decision of the court of appeals upholding that trial court's determination that the plaintiff homeowner's award of attorneys fees and costs under Tenn. Code Ann. 20-12-119(c) was limited to those incurred after the date the defendant contractor filed an amended countercomplaint, holding that the lower courts erred.Plaintiff and Defendant entered into a contract for the renovation of a residence. Plaintiff later filed a complaint alleging breach of contract and violation of the Tennessee Consumer Protection Act. Defendant filed an amended countercomplaint asserting breach of contract. The trial court dismissed all of Plaintiff's claims and then dismissed the countercomplaint. On appeal, Plaintiff challenged the attorney fee and costs award granted by the trial court. The court of appeals affirmed. The Supreme Court vacated the trial court's award of attorney fees and costs, holding that the fees and costs recoverable by Plaintiff in connection with the dismissal of Defendant’s breach of contract claim are not limited to those incurred after the amended countercomplaint was actually filed. View "Donovan v. Hastings" on Justia Law