Justia U.S. 4th Circuit Court of Appeals Opinion SummariesArticles Posted in Consumer Law
Mey v. DIRECTV, LLC
The Fourth Circuit vacated the district court's order denying DIRECTV's motion to compel arbitration in an action brought by plaintiff, alleging violations of the Telephone Consumer Protection Act (TCPA). Plaintiff alleged that defendants called her cell phone to advertise DIRECTV products and services even though her telephone number is listed on the National Do Not Call Registry.Because plaintiff signed an acknowledgement expressly agreeing to the arbitration provision of the Wireless Customer Agreement with AT&T, which provision applies to her as an authorized user, the court rejected plaintiff's argument that she did not form an agreement to arbitrate. The court held that plaintiff formed an agreement to arbitrate with DIRECTV where the ordinary meaning of "affiliates" and the contractual context convinced the court that the term includes affiliates acquired after the agreement was signed. Furthermore, in light of the expansive text of the arbitration agreement, the categories of claims it specifically includes, and the parties' instruction to interpret its provisions broadly, the court must conclude that plaintiff's TCPA claims fall within the scope of the arbitration agreement. Therefore, the court remanded for further proceedings. View "Mey v. DIRECTV, LLC" on Justia Law
Bender v. Elmore & Throop, P.C.
The Fourth Circuit vacated the district court's dismissal of plaintiff's complaint alleging claims under the Fair Debt Collection Practices Act (FDCPA). The district court concluded that the entire complaint was time-barred because the more recent violations that plaintiffs alleged were of the "same type" as other violations that occurred outside the one-year limitations period.The court disagreed with the district court's analysis and held that each violation of the FDCPA gives rise to a separate claim governed by its own limitations period. In this case, plaintiffs have alleged at least two potential violations of the FDCPA that are not barred by the one-year limitations period provided by the Act. Therefore, the court remanded for further proceedings. View "Bender v. Elmore & Throop, P.C." on Justia Law
Posted in: Consumer Law
Krakauer v. Dish Network
Plaintiff filed suit against Dish Network, alleging that its sales representative, Satellite Systems Network (SSN), routinely violated the Telephone Consumer Protection Act (TCPA) by calling numbers on the national Do-Not-Call registry. After the district court certified the class, the case went to trial and Dish ultimately lost.The Fourth Circuit affirmed, holding that the district court properly applied the law and prudently exercised its discretion. The court rejected Dish's challenges to class certification and held that the class certified by the district court complied with Article III's requirements; the court rejected Dish's claims of error under Federal Rule of Civil Procedure 23 and held that the TCPA supported class-wide resolution of this class; and the court rejected Dish's challenges to the jury findings and held that there was ample evidence for the district court's rationales in the record produced at trial. View "Krakauer v. Dish Network" on Justia Law
Edmondson v. Eagle National Bank
Plaintiffs brought a putative class action alleging that between 2009 and 2014 certain lenders participated in "kickback schemes" prohibited by the Real Estate Settlement Procedures Act (RESPA). The district court dismissed the claims because the first of the five class actions was filed after the expiration of the one year statute of limitations.The Fourth Circuit reversed and held that, under the allegations set forth in their complaints, plaintiffs were entitled to relief from the limitations period under the fraudulent concealment tolling doctrine. In this case, plaintiffs sufficiently pleaded that the lenders engaged in affirmative acts of concealment and the court could not conclude as a matter of law that these plaintiffs unreasonably failed to discover or investigate the basis of their claims within the limitations period. Accordingly, the court remanded for further proceedings. View "Edmondson v. Eagle National Bank" on Justia Law
Robinson v. US Department of Education
Plaintiff appealed the district court's dismissal of his action against the Department of Education for violations of the Fair Credit Reporting Act (FCRA). Plaintiff's action stemmed from defendants' treatment of an allegedly fraudulent student loan in plaintiff's name. The Fourth Circuit affirmed the district court's dismissal of the action based on lack of jurisdiction because Congress had not waived sovereign immunity for suits under the FCRA. The court held that the purported FCRA waiver in this case fell short of being unambiguous and unequivocal. View "Robinson v. US Department of Education" on Justia Law
Curtis v. Propel Property Tax Funding, LLC
Plaintiff filed suit against Propel, alleging violations of the Truth in Lending Act (TILA), the Electronic Funds Transfer Act (EFTA), and the Virginia Consumer Protection Act (VCPA). Plaintiff's action stemmed from a tax payment agreement (TPA) he entered into with Propel under Virginia Code section 58.1-3018. Propel then moved to dismiss the TILA and EFTA claims.The Fourth Circuit affirmed the district court's denial of Propel's motion to dismiss, holding that plaintiff had standing to bring claims under EFTA because the harm that he alleged was a substantive statutory violation that subjected him to the very risks that EFTA, a consumer protection statute, was designed to protect against. The court also held that the TPA was subject to TILA and EFTA because the TPA was a consumer credit transaction. In this case, the TPA was a credit transaction because it provided for third-party financing of a tax obligation. Furthermore, the TPA was a consumer transaction because, as financing of a real property tax debt, it was a voluntary transaction that plaintiff entered into for personal or household purposes. View "Curtis v. Propel Property Tax Funding, LLC" on Justia Law
Adbul-Mumit v. Alexandria Hyundai, LLC
These appeal arose from the dismissal of three consumer actions based on Virginia state law claims against Hyundai, regarding misrepresentations the company made regarding EPA estimated fuel economy for the Hyundai Elantra. The Western District of Virginia dismissed with prejudice the claims in all three actions, except one claim in the Gentry action. The Fourth Circuit dismissed the Gentry appeal for lack of jurisdiction because one claim remained pending before the district court. The court affirmed the district court's dismissal of the Adbul-Mumit and Abdurahman actions for failure to satisfy federal pleading standards. The court also affirmed the denial of plaintiffs' post-dismissal request for leave to amend their complaints in those actions. View "Adbul-Mumit v. Alexandria Hyundai, LLC" on Justia Law
Hutton v. National Board of Examiners in Optometry, Inc.
Optometrists across the country noticed that Chase Amazon Visa credit card accounts had been fraudulently opened in their names, using correct social security numbers and birthdates. The victims discussed the thefts in Facebook groups dedicated to optometrists and determined that the only common source to which they had given their personal information was NBEO, where every graduating optometry student submits personal information to sit for board-certifying exams. NBEO released a Facebook statement that its “information systems [had] NOT been compromised.” Two days later, NBEO stated that it had decided to further investigate. Three weeks later, NBEO posted “a cryptic message stating its internal review was still ongoing.” NBEO advised the victims to “remain vigilant in checking their credit.” Victims filed suit under the Class Action Fairness Act, 28 U.S.C. 1332(d)(2). The district court dismissed for lack of standing. The Fourth Circuit vacated. These plaintiffs allege that they have already suffered actual harm in the form of identity theft and credit card fraud; they have been concretely injured by the use or attempted use of their personal information to open credit card accounts without their knowledge or approval. There is no need to speculate on whether substantial harm will occur. The complaints contain allegations demonstrating that it is both plausible and likely that a breach of NBEO’s database resulted in the fraudulent use of the plaintiffs’ personal information. View "Hutton v. National Board of Examiners in Optometry, Inc." on Justia Law
Dwoskin v. Bank of America, N.A.
The Fourth Circuit affirmed the district court's grant of summary judgment for the bank in an action alleging violation of the Homeowners Protection Act. Plaintiffs alleged that the bank failed to make certain required disclosures in connection with their residential mortgage loans. The court held that the statute was clear that these mortgage insurance disclosures were mandated only if lender-paid mortgage insurance was a condition of obtaining a loan. In this case, because no such conditions applied to plaintiffs' loans, nondisclosure was not a violation of the Act. View "Dwoskin v. Bank of America, N.A." on Justia Law
Hodgin v. UTC Fire & Security Americas Corp.
Plaintiffs filed suit against UTC and Honeywell under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227, alleging that the companies were vicariously liable for illegal calls made by telemarketers promoting UTC and Honeywell products. The Fourth Circuit affirmed the district court's denial of the Federal Rule of Civil Procedure 56(d) motion because plaintiffs failed to show that they did not have an opportunity to discover specific evidence that was essential to their opposition to summary judgment. The court also affirmed the district court's grant of summary judgment because plaintiffs failed to proffer more than a scintilla of evidence to support the conclusion that UTC and Honeywell were vicariously liable for the telemarketers' alleged TCPA violations. View "Hodgin v. UTC Fire & Security Americas Corp." on Justia Law