Justia Antitrust & Trade Regulation Opinion Summaries
Articles Posted in Consumer Law
Kersten v. State Farm Mut. Auto. Ins. Co.
State Farm filed a complaint for negligence against Appellant, alleging that Appellant was at fault in an automobile accident with State Farm's insured. Appellant counterclaimed, alleging that State Farm was unjustly enriched as a result of having engaged in the deceptive and unlawful business practice of causing collection-style letters to be mailed in an attempt to collect unadjudicated, potential subrogation claims as debts. Appellant's counterclaim identified two putative classes. State Farm filed a motion to strike the class allegations. Rather than granting the motion to strike class allegations, the circuit court denied class certification "for the reasons stated in State Farm's motion." The Supreme Court reversed, holding that the circuit court acted without due consideration of the Court's foregoing case law on typicality, commonality, and predominance and therefore abused its discretion in prematurely denying class certification at the early pleading stage of this case. Remanded. View "Kersten v. State Farm Mut. Auto. Ins. Co." on Justia Law
McMillan v. Live Nation Entm’t, Inc.
Corey McMillan, individually and on behalf of a purported class, filed a complaint against Live Nation Entertainment and Ticketmaster (collectively Ticketmaster), alleging that Ticketmaster charged fees in excess of the printed ticket price to musical or entertainment events in Arkansas and asserting that the additional charges violated Ark. Code Ann. 5-63-201(a)(1)(B), which makes it unlawful for any person, corporation, firm, or partnership to offer for sale any ticket to any music entertainment event at a greater price than that printed on the ticket or the advertised price of the ticket. The Arkansas Supreme Court accepted certification from the U.S. district court to answer a question of Arkansas law and held that section 5-63-201 by its plain and unambiguous language applies to a person, corporation, firm, or partnership and does not exclude exclusive ticket agents of public facilities who sell music entertainment tickets that include in the price of the ticket additional fees, resulting in the price of the ticket being more than the face value and advertised price of the ticket.View "McMillan v. Live Nation Entm't, Inc." on Justia Law
Posted in:
Antitrust, Consumer Law
Discover Bank v. Morgan
At issue in this consumer protection case was which Tennessee Rule of Civil Procedure applied to a motion that sought relief from a default judgment of liability on a counter-complaint, where the motion was filed within thirty days of entry of the default, the trial court did not expressly direct the entry of judgment on the counter-complaint pursuant to Tenn. R. Civ. P. 54.02, and neither liability on the original complaint nor damages on the counter-complaint were determined. The trial court entered default judgment in favor of the consumer on her counterclaims against Discover Bank and awarded the consumer damages. The court of appeals upheld the default judgment, vacated the award of damages, and remanded the case for a new hearing on damages. The Supreme Court affirmed, holding (1) Rule 54.02, rather than Tenn. R. Civ. P. 60.02, applies in this situation, but the same test applies to motions seeking relief from default judgment, under either rule, on the basis of "excusable neglect"; and (2) actual damages are recoverable for loss of available credit under Tennessee Consumer Protection Act where the plaintiff suffers a demonstrable loss of credit, proximately caused by the defendant, resulting in actual harm.View "Discover Bank v. Morgan " on Justia Law
Grand Valley Ridge LLC v. Metropolitan Nat’l Bank
Metropolitan National Bank (MNB) loaned Grand Valley Ridge several million dollars for the completion of a subdivision. After Grand Valley failed to make its interest payments, MNB filed a petition for foreclosure. Grand Valley and Thomas Terminella, a member of Grand Valley (collectively, Appellants), filed an amended counterclaim alleging various causes of action. During the trial, the circuit court granted Appellants' motion to take a voluntary nonsuit of their claims of negligence and tortious interference with contract. The circuit court held in favor of MNB. The court subsequently granted MNB's petition for foreclosure and awarded a judgment against Appellants. Thereafter, Appellants filed a complaint alleging their original nonsuited counterclaims and adding additional claims. MNB moved to dismiss Appellants' complaint and filed a motion for sanctions. The circuit court granted both motions. The Supreme Court affirmed, holding, inter alia, (1) because Appellants brought claims clearly barred by the statute of limitations, the circuit court did not abuse its discretion in awarding sanctions; and (2) the circuit court properly granted summary judgment for MNB on Grand Valley's nonsuited issues based on the applicable statute of limitations.View "Grand Valley Ridge LLC v. Metropolitan Nat'l Bank" on Justia Law
Bennett & Deloney P.C. v. State
The State brought a consumer-protection action against Bennett & DeLoney, a Utah law firm, and the owners and principals thereof to redress and restrain alleged violations of the Arkansas Deceptive Trade Practices Act (ADTPA). The thrust of the complaint alleged that Bennett & DeLoney violated the ADTPA by attempting to collect penalties on dishonored checks greater than those amounts permitted by Ark. Code Ann. 4-60-103. The circuit court (1) granted partial summary judgment for the State, finding that the collection of amounts in excess of those set forth in section 4-60-103 violated the ADTPA; and (2) found that section 4-60-103 provided an exclusive remedy for recovery on dishonored checks and that the use of remedies set forth in Ark. Code Ann. 4-2-701, relating to a seller's incidental damages, was not permitted. The Supreme Court reversed and dismissed, holding that the ADTPA has no application to the practice of law by attorneys, and the circuit court erred in concluding otherwise. View "Bennett & Deloney P.C. v. State" on Justia Law
Curtis v. Citibank
Meril Curtis's houseguest took his credit card and made over $7,000 in unauthorized charges. After acknowledging that the charges were unauthorized and that Curtis was not personally liable for the charges, Citibank referred the account to a collection agency called Professional Recovery Services (PRS). Curtis filed suit against Citibank, alleging libel and credit libel and violation of the Montana Consumer Protection Act (MCPA). The district court granted summary judgment to Citibank, finding that Curtis's claims were preempted by the federal Fair Credit Reporting Act (FCRA). The Supreme Court reversed, holding that the district court erred in finding that Curtis' state law claims were preempted by the FCRA because the FCRA does not regulate collection agencies such as PRS. Remanded.View "Curtis v. Citibank" on Justia Law
Harmon v. Fiscus Realty
Frederick and Mandelena Harmon bought a home pursuant to a buy-sell agreement that realtor Dianne Burright, a licensed real estate salesperson who worked for Fiscus Realty, prepared at the Fiscus Realty office. The home was built by Dianne's husband, Jerry. The Harmons subsequently discovered numerous construction problems. The Harmons sued Defendants Jerry and Dianne Burright and Fiscus Reality, raising several causing of action, including a claim under the Unfair Trade Practices and Consumer Protection Act (the Act). A jury returned a verdict against the Burrights on breach of warranty and negligent misrepresentation claims and held for Defendants on all other claims. After trial, Defendants filed motions for attorney fees as prevailing parties under the Act, which the district court denied. Fiscus Realty appealed. The Supreme Court affirmed, holding that the district court did not abuse its discretion in denying an award of attorney fees to Fiscus Realty as the Harmons' claims had a basis in fact and law and were not frivolous, unreasonable or unfounded.View "Harmon v. Fiscus Realty" on Justia Law
In re Air Cargo Shipping Services Antitrust Litigation
Plaintiffs brought suit against numerous foreign airlines alleging a conspiracy to fix prices in violation of state antitrust, consumer protection, and unfair competition laws. The district court dismissed those claims as expressly preempted by federal law. The Federal Aviation Act, 49 U.S.C. 41713(b)(1), preempted state-law claims "related to a price, route, or service of an air carrier." The court concluded that "air carrier" in that provision applied to foreign air carriers and therefore, affirmed the judgment. View "In re Air Cargo Shipping Services Antitrust Litigation" on Justia Law
Funeral Consumers Alliance Inc, et al v. Service Corp. Intl, et al
Plaintiffs brought a class action suit under section 4 of the Clayton Act, 15 U.S.C. 15, against the largest United States casket manufacturer, Batesville; and against the three largest United States funeral home chains and distributors of Batesville caskets. Plaintiffs alleged that defendants conspired to foreclose competition from independent casket discounters (ICDs) who sold caskets directly to consumers at discount prices and maintained artificially high consumer casket prices in violation of sections 1 and 2 of the Sherman Act, 15 U.S.C. 1, 2, by engaging in a group boycott to prevent ICDs from selling Batesville caskets and dissuading consumers from purchasing caskets from ICDs. Plaintiffs also alleged that defendants used concerted efforts to restrict casket price competition, including coordinating prices, limiting the advertisement of pricing, and engaging in sham discounting. The court reversed and remanded the district court's dismissal for lack of subject matter jurisdiction of the claim for attorneys' fees and costs; affirmed the district court's dismissal of Consumer Appellants' and FCA's injunctive relief claims for lack of subject matter jurisdiction; and affirmed the district court's denial of class certification. View "Funeral Consumers Alliance Inc, et al v. Service Corp. Intl, et al" on Justia Law
Spirit Airlines, Inc. v. U.S. Dep’t of Transp.
Pursuant to its authority to regulate "unfair and deceptive" practices in the airline industry, the Department of Transportation issued a final rule entitled "Enhancing Airline Passenger Protections." Spirit Airlines and others challenged three of the rule's provisions. The D.C. Circuit Court of Appeals denied the petitions for review, holding (1) the requirement that the most prominent figure displayed on print advertisements and websites be the total price, inclusive of taxes, was not arbitrary and capricious or a violation of the First Amendment; (2) the requirement that airlines allow consumers who purchase their tickets more than a week in advance the option of canceling their reservations without penalty for twenty-four hours following purchase was not arbitrary and capricious; and (3) the prohibition against increasing the price of air transportation and baggage fees after consumers purchase their tickets was not procedurally unlawful or otherwise arbitrary and capricious. View "Spirit Airlines, Inc. v. U.S. Dep't of Transp. " on Justia Law