Earlier this year, the New Jersey Supreme Court held in Pace v. Hamilton Cove that class action waivers in consumer contracts that do not contain an arbitration clause (i.e., a stand-alone class action waiver) are not per se contrary to public policy. While cautioning that such waivers may be unenforceable if found to be unconscionable or otherwise violative of state law, the court upheld the waiver in this case because the plaintiffs clearly and unambiguously waived their right to maintain a class action and the parties’ lease contract was not unconscionable as a matter of law.… Continue Reading
Litigation and Court Decisions
This week’s podcast episode: The Demise of the Chevron Doctrine – Part II
By Mindy Harris on
Posted in Litigation and Court Decisions, Podcasts
On June 28, in Loper Bright v. Raimondo, et al., the Supreme Court overturned the Chevron deference doctrine, a long-standing tenet of administrative law established in 1984 in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. This doctrine directed courts to defer to a government agency’s interpretation of ambiguous statutory language as long as the interpretation was reasonable.… Continue Reading
Plaintiffs free to appeal CFPB 1071 Rule after some plaintiffs drop their CFPB unlawful funding claim
On August 26, 2024, Chief Judge Randy Crane in the S.D. Texas granted summary judgment to the CFPB, denied summary judgment to the trade groups and upheld the CFPB’s 1071 Rule (small business loan data collection rule).
On August 2, 2024, the Farm Credit Intervenors (three organizations who long ago intervened as plaintiffs in order to take advantage of a preliminary injunction against the CFPB granted to the original plaintiffs based on the Fifth Circuit’s opinion in CFSA v.… Continue Reading
This week’s podcast episode: The Demise of the Chevron Doctrine – Part I
By Mindy Harris on
Posted in Litigation and Court Decisions, Podcasts
On June 28, in Loper Bright v. Raimondo, et al., the Supreme Court overturned the Chevron deference doctrine, a long-standing tenet of administrative law established in 1984 in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. This doctrine directed courts to defer to a government agency’s interpretation of a statute if the statute was ambiguous regarding, or simply did not address, the issue before the court, as long as the interpretation was reasonable.… Continue Reading
Appeals Court: No FCRA Informational Injury Standing
Posted in Litigation and Court Decisions
A job applicant who claims he was not fully informed about adverse information that appeared on a background check is not entitled to relief under the Fair Credit Reporting Act (the FCRA), the Sixth Circuit Court of Appeals ruled on Aug. 20.
The court cited the Supreme Court’s decision in TransUnion LLC v.… Continue Reading
Pennsylvania Supreme Court To Decide Enforceability of Online Arbitration Agreements
By Mark J. Levin on
Posted in Arbitration, Litigation and Court Decisions
As reported in Public Citizen’s Consumer Law & Policy Blog, the Pennsylvania Supreme Court recently agreed to review Chilutti v. Uber Technologies, Inc., in which a divided panel of the Pennsylvania Superior Court (and later the Superior Court en banc) held that courts must apply a “stricter burden of proof” when asked to enforce an arbitration agreement in a company’s online terms and conditions because arbitration waives the constitutional right to a jury trial.… Continue Reading
Federal District Court in Texas which recently validated CFPB’s small business data collection rule might entertain “new” funding challenge to CFPB
By Alan S. Kaplinsky on
On August 26, 2024, Chief Judge Randy Crane in the S.D. Texas granted summary judgment to the CFPB, denied summary judgment to the trade groups and upheld the validity of the CFPB’s small business data collection rule. However, the Judge still needs to rule on a motion to amend the complaint and a motion for judgment on the pleadings.… Continue Reading
CFPB files its reply brief in support of the CFPB’s motion to dissolve the preliminary injunction in the credit card late fee lawsuit
On August 22, 2024, the CFPB filed its reply brief in support of its motion to dissolve the preliminary injunction and lift the stay of the CFPB’s credit card late fee final rule (“Rule”) in the lawsuit challenging the Rule.
On May 10, 2024, in issuing the preliminary injunction, Judge Pittman found that the plaintiffs had established a likelihood of success on the merits based solely on the Fifth Circuit’s decision in CFSA v.… Continue Reading
In finding no National Bank Act Preemption, Ninth Circuit Ignores Supreme Court Directive in and Pays Lip Service to Cantero v. Bank of America Opinion Regarding NBA Preemption
In a surprising quick turn of events, on remand from SCOTUS, the 9th Circuit, on August 23, 2024, issued its unanimous unpublished panel opinion in Kivett v. Flagstar Bank, FSB (Kivett II) in which it essentially re-affirmed its earlier panel opinion holding that there is no preemption of a California state law which requires the payment of 2% interest on residential mortgage escrow accounts.… Continue Reading
Unlawful funding argument raised in challenge to final CFPB rule
By Alan S. Kaplinsky on
We have previously blogged about how targets of CFPB enforcement actions have asserted that the actions must be dismissed because the investigations were conducted and the lawsuits were brought and are being prosecuted with funds unlawfully obtained from the Federal Reserve Board at a time when the Federal Reserve System had no combined earnings.… Continue Reading