Category Archives: Class Actions

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Increasing Legal Scrutiny of Website Accessibility in the Real Estate Industry

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From fair housing laws to licensing requirements, the real estate industry is accustomed to navigating various legal constraints and requirements. However, as a result of current ambiguity in the law, class action lawsuits based upon website accessibility pose an emerging threat to real estate brokers, lenders, homebuilders, and ultimately, any company that has a web … Continue reading this entry

Supreme Court Vacancy Leaves Spokeo Outcome Even More Uncertain

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The consumer financial services industry is wondering how the sudden passing of United States Supreme Court Justice Antonin Scalia will affect the pending Spokeo, Inc. v. Thomas Robins case. Spokeo is a key case dealing with whether a class action lawsuit may be brought by a consumer who suffered no actual injury, based solely on a claimed … Continue reading this entry

Reply Brief filed in Spokeo v. Robins – Oral Argument next on Nov. 2

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In its reply brief in Spokeo v. Robins, petitioner Spokeo comes out of the gate with the consequential argument that for Robins to prevail, the Supreme Court must accept his position that every violation of a statutory right qualifies as an injury-in-fact. Indeed, the case is much larger than Fair Credit Reporting Act (FCRA) inaccuracies … Continue reading this entry

D&O Policies: A Possibility for TCPA Coverage?

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Business is booming for plaintiffs’ attorneys wielding the Telephone Consumer Protection Act (TCPA). The TCPA restricts unsolicited telemarketing by fax, voice calls and text messages. Violations can trigger liability of at least $500 for each fax, text or call. The prospect of lucrative recoveries has proven to be attractive, with the volume of TCPA class … Continue reading this entry

Response from Robins in the Spokeo Case at the U.S. Supreme Court

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This week, the respondent in Spokeo v. Robins filed his merits brief. The main thrust of the brief challenges Spokeo’s assertion that Robins lacks standing without “real-world” injury. Instead Robins argues that he meets the Constitution’s “Case and Controversy” requirement on one of several bases to vindicate his statutory rights under the Fair Credit Reporting Act … Continue reading this entry

Supreme Court to Decide Whether Offer of Judgment Can Moot TCPA Class

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Deciding to step in to resolve a splint in the Circuits, the United States Supreme Court announced today that it granted a petition for a writ of certiorari in Campbell-Ewald Co. v. Gomez, No. 14-857. That means that the Court will finally address an issue left open in Genesis Healthcare Corp. v. Symczyk, 133 S. Ct. … Continue reading this entry

U.S. Supreme Court Accepts Review of Robins v. Spokeo, Inc.

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The Supreme Court recently accepted review of one of the most talked about privacy class action and consumer cases of the past year, Robins v. Spokeo, Inc., No. 13-1339 (U.S.). The issue before the Court is whether Congress can confer Article III standing on a plaintiff who suffers no concrete harm, but who can recover … Continue reading this entry

Ninth Circuit Remands FCRA Case – Actual Injury Not Required for Article III Standing

On Tuesday, the Ninth Circuit remanded Robins v. Spokeo, Inc., Case No. 2:10-cv-05306-ODW-AGR on the basis that the district court erred in finding that the Plaintiff, Thomas Robins (“Robins”), did not have Article III “injury-in fact” standing to file his suit alleging violations of Fair Credit Reporting Act (“FCRA”) §§1681b(b)(1), 1681e(b), and 1681j(a).… Continue reading this entry

Ninth Circuit Rejects Constitutional Challenge to Bank Credit Card Overlimit and Late Fees

In the case of In re: Late Fee and Over-Limit Fee Litigation (Pinon v. Bank of America, N.A.), No. 08-15218, ___ F.3d ___ (9th Cir., Jan. 21, 2014), a plaintiff class of cardholders contended that overlimit and late payment fees charged by banks to credit card-holders grossly exceed the actual harm caused to the issuing banks. The … Continue reading this entry

Sixth Circuit in Carter Refuses to Defer to HUD's RESPA Guidelines

In a decision two years in the making, on Wednesday, November 27, 2013, the Sixth Circuit Court of Appeals brought some clarity to the use of affiliated business arrangements (“ABAs”) under Real Estate Settlement Procedures Act (RESPA).  In doing so, the Court dealt a serious blow to what has become a veritable cottage industry for … Continue reading this entry

SCOTUS Upholds Enforceability of Class Action Waiver in Arbitration Agreements

Once again demonstrating its strong support for enforcement of the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (FAA), and class action waivers, the Supreme Court today struck a blow to what had become a potentially promising argument for plaintiffs’ counsel. In American Express Co. v. Italian Colors Restaurant, No. 12-133, the Court in a 5-3 decision … Continue reading this entry

New SCOTUS Class Arbitration Ruling May Have Limited Impact

On June 10th, the Supreme Court issued a unanimous opinion in Oxford Health Plans v. Sutter, No. 12-135, that will be viewed by some as increasing the risk of class proceedings in arbitration. The sweep of the case, however, will likely be much more limited for several reasons. In Oxford, the Supreme Court rejected a … Continue reading this entry

As the CFPB Turns ... And Other Consumer Financial Services News

In this week’s episode of As the CFPB Turns questions remain regarding Director(?) Richard Cordray’s constitutional authority to act as the Director of the CFPB.  House Financial Services Committee Chairman, Jeb Hensarling, R-Texas, advised Cordray that the D.C. Circuit’s recent decision, which found that President Obama’s recess appointments to the National Labor Relations Board were … Continue reading this entry

Court Limits Use of Zip Codes in Massachusetts Credit Card Transactions

In a recent decision, Tyler v. Michaels Stores, Inc., the Massachusetts Supreme Judicial Court held that zip codes are “personal identification information” and that a merchant asking for that information during a credit card transaction violates a Massachusetts statute [G.L.c. 93, Section 105(a)] designed to protect consumer privacy, becoming the second state high court, after California, to declare … Continue reading this entry

Bank Sued Over "Unfair" and "Deceptive" Overdraft Fees

A large bank was sued in federal court in New York last week by a putative nationwide class alleging that the bank engaged in “unfair, deceptive, and unconscionable assessment and collection of excessive overdraft fees.” The complaint accuses HSBC Bank and other companies of manipulating the order of customers’ debit card transactions to maximize overdraft … Continue reading this entry

Developments in Law, Factual Discovery Lead Federal Judge to Decertify Class Action

In Campbell v. First American, a federal judge in Maine has issued a ruling decertifying a class action involving claims that First American Title Insurance Co. overcharged refinance customers for their title insurance. As members of the financial services industry may be all too aware, class certification is a critical point in litigation. A decision to … Continue reading this entry

Second Circuit Panel Strikes Arbitration Agreement With Class Action Waiver

In In Re: American Express Merchants’ Litigation (No. 06-1871-cv), a two judge panel of the Second Circuit breathes new life into arguments to strike arbitration clauses. The court held that, because of the allegedly prohibitive costs for pursuing antitrust claims on an individual basis, forcing the plaintiffs to pursue their claims in arbitration would prohibit them … Continue reading this entry

Supreme Court In CompuCredit Corp. v. Greenwood Gives Another Victory to Proponents of Arbitration

Following on the heals of its pro-arbitration decision in Concepcion from earlier this year, the United States Supreme Court ruled today that a federal statute that provides for a private right of action and even for class actions, but is silent as to whether these claims can proceed in arbitration, does not trump the Federal … Continue reading this entry

Eighth Circuit Upholds 365/360 Days Interest Calculation Clause

The U.S. Court of Appeals for the Eighth Circuit recently upheld the enforceability and clarity of a 365/360 day interest calculation clause.  As noted in an earlier posting regarding this case, the U.S. District Court for the Eastern District of Missouri had previously dismissed a class action alleging that the lender breached its contracts with the plaintiff class … Continue reading this entry

The Ninth Circuit Permits Cumulative Recovery Under the FDCPA and California's Rosenthal Act

The recent Ninth Circuit decision, Gonzalez v. Arrow Financial Services, LLC, — F.3d —, 2011 WL 4430844 (9th Cir Sept. 23, 2011), addresses several issues relating to claims brought under the Fair Debt Collection Practices Act (“FDCPA”) and examines that statute’s interaction with the corresponding California debt collection statute, the Rosenthal Act.… Continue reading this entry

7th Circuit Reinstates Meritorious FDCPA Case Despite Empty Class Action Claims

In a decision issued last Friday, chastising both the plaintiff’s lawyer and the district court, the Seventh Circuit rolled back the dismissal, for want of prosecution, of a Fair Debt Collection Practices Act (FDCPA) case. It was abuse of discretion to dismiss plaintiff’s entire case – which included a meritorious FDCPA claim – just because the alleged … Continue reading this entry

U.S. Supreme Court Grants Review Regarding RESPA Standing in the Absence of Economic Injury

On Monday, the U.S. Supreme Court granted certiorari in a proposed class action to determine the scope of a home-buyer’s standing to sue a title insurer company that allegedly violated the Real Estate Settlement Procedures Act of 1974 (RESPA). In First American Financial Corporation, et al. v. Edwards (10‑708), the question before the Court is … Continue reading this entry

United States Supreme Court Holds Class Actions Waivers In Arbitration Agreements Are Enforceable

The United States Supreme Court issued a much awaited decision today that will dramatically impact class action litigation across the country. In a 5-4 decision, in AT&T Mobility LLC v. Concepcion, No. 09-893 (April 27, 2011),  the Court held that arbitration agreements in standard form contracts that waive the right to pursue a class action … Continue reading this entry

Fifth Circuit Affirms Denial of Class Certification of Claims Against Title Insurance Company

In the recent case of Benavides v. Chicago Title Insurance Co., — F.3d —-, 2011 WL 1107009, No. 10-10136 (5th Cir. March 23, 2011), the Fifth Circuit affirmed the Northern District of Texas’s denial of class certification which was based on a finding that there lacked predominance of common questions over individualized ones. In Benavides, … Continue reading this entry