Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Articles Posted in Consumer Law
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Plaintiff sued Trump University for, among other things, deceptive business practices. Trump University counterclaimed against plaintiff for defamation based on the statements in letters and Internet postings plaintiff had made. Plaintiff then moved under California's "anti-SLAPP" (Strategic Lawsuits Against Public Participation) law, California Code of Civil Procedure 425.16, to strike the defamation claim. At issue on appeal was whether Trump University, a private, for-profit entity purporting to teach Trump's "insider success secrets," was itself a public or limited public figure so as to implicate the First Amendment. The court concluded that Trump University was a limited public figure for the limited purpose of the public controversy over the quality of the education it purported to provide, and to prevail here, must demonstrate that plaintiff acted with actual malice. Because the district court erred by failing to recognize Trump University's status as a limited public figure, the court reversed and remanded for further proceedings. View "Makaeff, et al v. Trump University" on Justia Law

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Plaintiffs, Prius owners, brought a putative class action suit against Toyota, alleging that they experienced defects in their anti-lock brake systems (ABS), resulting in increased stopping distances. On appeal, Toyota sought review of the district court's denial of their motion to compel arbitration. The court concluded that Toyota could not compel plaintiffs to arbitrate their claims. The district court had the authority to decide whether Toyota, a nonsignatory to the Purchase Agreement, could compel arbitration. The court discerned no reason that plaintiffs should be equitably estopped from avoiding arbitration in this case. Accordingly, the court affirmed the judgment. View "Kramer, et al v. Toyota Motor Corp., et al" on Justia Law

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Plaintiffs sued Wells Fargo under California state law for engaging in unfair business practices by imposing overdraft fees based on a high-to-low posting order and for engaging in fraudulent practices by misleading clients as to the actual posting order used by the bank. The district court entered judgment in favor of plaintiffs and Wells Fargo subsequently appealed, raising issues of federal preemption. The court concluded that federal law preempted state regulation of the posting order as well as any obligation to make specific, affirmative, disclosures to bank customers. The court held, however, that Federal law did not preempt California consumer law with respect to fraudulent or misleading representations concerning posting. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Gutierrez, et al v. Wells Fargo Bank, N.A." on Justia Law

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Plaintiff, on behalf of himself and a class of similarly situated plaintiffs, argued that a series of automated telephone calls placed to his home by Best Buy violated the Telephone Consumer Protection Act of 1991 (TCPA), 47 U.S.C. 227, and the Washington Automatic Dialing and Announcing Device Act (WADAD), Wash. Rev. Code 80.36.400. The court concluded that these calls were aimed at encouraging listeners to engage in future commercial transactions with Best Buy to purchase its goods. They constituted unsolicited advertisements, telephone solicitations, and telemarketing, and were prohibited by the TCPA, the WADAD, and the Washington Consumer Protection Act, Wash. Rev. Code 80.36.400(3). View "Chesbro v. Best Buy Co., Inc." on Justia Law

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PRA appealed the district court's order granting plaintiff's motion for a preliminary injunction and provisional class certification. Plaintiff's complaint alleged that PRA's debt collection efforts violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227. The court held that the district court had jurisdiction to issue the order; the district court did not abuse its discretion in certifying a provisional class for purposes of the preliminary injunction; and the district court did not abuse its discretion in granting the preliminary injunction. Accordingly, the court affirmed the judgment. View "Meyer v. Portfolio Recovery Assoc., et al" on Justia Law

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Plaintiffs filed a putative class action against Facebook and others complaining that Facebook's program, Beacon, was causing publication of otherwise private information about their outside web activities to their personal profiles without their knowledge or approval. Beacon operated by updating a member's personal profile to reflect certain actions the member had taken on websites belonging to companies that had contracted with Facebook to participate in the Beacon program. At issue on appeal was whether the district court abused its discretion in approving the parties' $9.5 million settlement agreement as "fair, reasonable, and adequate," either because a Facebook employee sat on the board of the organization distributing cy pres funds (DTF) or because the settlement amount was too low. The court concluded that objectors' contention that the settling parties were prohibited from creating DTF to disburse cy pres funds was without merit, and the district court did not abuse its discretion in so concluding. The court also concluded that the settlement was fundamentally fair; the notice in this case adequately apprised class members of all material elements of the settlement agreement and therefore complied with the requirements of Rule 23(e); and the district court properly limited its substantive review of the agreement as necessary to determine that it was "fair, adequate, and free from collusion." View "Lane, et al v. Facebook, Inc., et al" on Justia Law

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In this putative class action, plaintiff alleged that HSBC and Best Buy (collectively, defendants) defrauded California customers by offering credit cards without adequately disclosing that cardholders would be subject to an annual fee. At issue was whether the district court erred when it considered extrinsic evidence in deciding defendants' motion to dismiss, and whether dismissal was proper under Rule 12(b)(6). The court held that the district court properly incorporated the disclosure documents at issue and the court affirmed its order dismissing plaintiff's complaint with prejudice. View "Davis v. HSBC Bank Nevada, N.A., et al." on Justia Law

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The FTC sued defendants alleging that their online marketing of prepaid debit cards and short-term loans to consumers in the subprime market violated section 5 of the Federal Trade Commission Act, 15 U.S.C. 45. After the parties settled and stipulated to the terms of a Final Order, the FTC applied for an order to show cause why defendants should not be held in contempt for violating the Final Order through their marketing of two products: a shopping club membership program and a "no cost" debit card. The court affirmed the contempt order in its entirety and held that the district court did not abuse its discretion when it sanctioned defendants for the full amount lost by consumers. View "FTC v. EDebitPay, LLC, et al." on Justia Law

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As the Ninth Circuit Court of Appeals said, "This case lends credence to the old adage that bad things comes in threes." Plaintiff was a cancer survivor who required experimental leukemia treatment. During his treatment, Plaintiff's identity was stolen by a hospital worker. When Plaintiff attempted to remedy the identity theft, the banks and credit rating agencies were allegedly uncooperative and continued to report the fraudulently opened accounts. In the case of Chase Bank (Chase), the thief's address was tagged as Plaintiff's. The district court granted summary judgment in favor of Chase on Plaintiff's false-reporting claims under the Fair Credit Reporting Act (FCRA). The Ninth Circuit Court of Appeals (1) reversed the judgment as to Chase's alleged violations of the FCRA, as issues of material fact remained on this issue; (2) reversed the district court's dismissal of similar claims against FIA Card Services on statute of limitations grounds; and (3) affirmed the denial of Plaintiff's motion to amend to reinstate his claims under California law. View "Drew v. Equifax Info. Servs., LLC" on Justia Law

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Defendant, Law Offices of Sidney Mickell, sent a debt collection letter addressed to Plaintiff, Catherine Evon, in "care of" her employer. Evon filed a class action lawsuit alleging (1) Mickell's act of sending letters "care of" the class members' employers violated the Fair Debt Collection Practices Act's prohibition on communication with third parties, and (2) the contents of the letter violated the Act's prohibition against false, deceptive, or misleading misrepresentations. The Ninth Circuit Court of Appeals (1) held Mickell's act of sending "care of" letters constituted a per se violation of the Act, and reversed the district court's denial of Evon's class certification motion on that issue; and (2) held that the contents of the letter did not violate the Act, and therefore affirmed the district court's denial of Evon's class certification motion in that regard. Remanded. View "Evon v. Law Offices of Sidney Mickell" on Justia Law