Financial Services

Following ZF Micro Devices, Inc. v. TAT Capital Partners, Ltd. (2016) 5 Cal.App.5th 69, this decision holds that the filing of the complaint tolls the statute of limitations for all claims the defendant pleads in a cross-complaint, whether compulsory or permissive, so long as the cross-claim was not time-barred at the time the complaint was filed.  This limitations tolling doctrine… Read More

The trial court correctly denied defendants' Anti-SLAPP motion to strike plaintiff's claims under the UCL and CLRA based on defendants' allegedly false statements in releases or other statements and advertisements that Michael Jackson was the lead artist on all tracks in a posthumous CD.  Even if the defendants' statements were protected speech under CCP 425.16(e), plaintiff showed a probability of… Read More

Following Gray v. Dignity Health (2021) 70 Cal.App.5th 225, this decision holds that a hospital does not violate the CLRA if it discloses its emergency room evaluation and management services fee in its on-line chargemaster list of fees.  No additional signage or disclosure of the EMS fee is required.  Any requirement of the sort would impair the Legislature's and Congress'… Read More

Following Gray v. Dignity Health (2021) 70 Cal.App.5th 225, this decision holds that a hospital does not violate the CLRA if it discloses its emergency room evaluation and management services fee in its on-line chargemaster list of fees.  No additional signage or disclosure of the EMS fee is required.  Any requirement of the sort would impair the Legislature's and Congress'… Read More

This decision affirms the CFPB's judgment against CashCall under 12 U.S.C. § 5536(a)(1)(B) which prohibits unfair, deceptive or abusive acts or practices in consumer finance.  CashCall made loans to consumers at rates that were usurious under the laws of the states where they resided, attempting to circumvent those laws by a choice of Indian tribal law in its loan agreements. … Read More

Under the FCRA, a furnisher of credit information must make a reasonable investigation if the consumer about whom it furnishes information to a credit reporting bureau properly protests the inaccuracy of the furnisher's information.  Furnishers, unlike credit reporting agencies, may be required to investigate the legal as well as factual bases of the information it furnishes.  Here, CitiMortgage continued to… Read More

When a nonexempt lender charges more interest than is allowed under Cal. Const. art. XV, sec. 1, the interest provisions of the loan agreement are unenforceable.  The principal amount of the loan is deemed due on the maturity date of the loan, and all payments on the loan before then are credited against principal.  However, if the loan is not… Read More

This decision reverses a summary judgment for defendant, finding a triable issue of fact as to whether defendant willfully violated the FCRA's requirement that an employer provide a job applicant a stand alone disclosure of its potential use of credit reports for employment screening.  (15 USC 1681b(b)(2)(A).)  Wilful for this purpose includes reckless conduct that increases the risk of violation… Read More

Particularly as amended in 2019, Civ. Code 2923.7 requires a loan servicer to appoint a SPOC for each borrower who seeks a foreclosure alternative.  The borrower need not specifically request a SPOC in order to trigger the statute.  Interpreting Civ. Code 2924.12, the decision holds that for post-foreclosure damages purposes, the court must analyze harm in three steps.  First, did… Read More

In this case, plaintiff sued defendant under the CLRA for not disclosing the amount of its potential or likely emergency room evaluation and management services fee.  The court concluded that the complaint adequately alleged that defendant owed a duty to disclose the charge as that information was within its sole knowledge and not readily available to its patients.  The complaint… Read More

The district attorneys of several counties served Alorica with an investigative subpoena to produce records regarding it debt collection practices and in particular with respect to its collections for a national bank.  Held, the subpoena was properly enforced.  That Alorica claims not to be a debt collector within the meaning of the Rosenthal Fair Debt Collection Practices Act is no… Read More

Under the CLRA (Civ. Code 1792(b), no "action for damages" may be brought against a defendant that offers appropriate correction within 30 days of receiving the plaintiff's notice of violation of the statute.  This decision holds that "action for damages" includes--and the subsection therefore bars--any claim for compensatory damages or for restitution under the CLRA.  The decision also holds that… Read More

The Supreme Court holds that lenders and loan servicers do not owe borrowers a duty of care in handling their loan modification applications.  Lender and borrower are in privity of contract, and the economic loss rule prevents recovery for purely economic loss based on negligence between contracting parties.  The Biakanja factors apply only to parties not in privity of contract. … Read More

The FCRA (15 U.S.C. 1681g does not require the CRA to disclose to a consumer on request information that the CRA collects on a consumer but would not place in a consumer credit report given to an actual or potential creditor, nor soft credit inquiries that, likewise are not reported in credit reports, nor information derived from the consumer's file… Read More

Under CCP 1174.3, an occupant of a premises that is not an invitee, licensee, guest, or trespasser may file a claim of right to possession of the premises to forestall eviction from the premises under an unlawful detainer judgment rendered in a case to which the occupant was not made a party.  To be valid the claim must show that… Read More

On remand after a prior appeal decided in plaintiff's favor, the district court granted defendant summary judgment finding that defendant was not negligent or willful in including in its credit report mention of plaintiff's criminal charge that was filed more than 7 years before the credit report but was dismissed less than 7 years before the report.  This decision affirms… Read More

A jury found Ford liable to a purchaser for fraud and a CLRA violation as well as a violation of the Song-Beverly Act for selling plaintiff a Ford pickup with a Navistar engine when Ford knew the Navistar engine created unsolvable problems when put in a Ford truck.  This decision holds that substantial evidence supported the jury's compensatory damage award… Read More

So long as the landlord does not contract with them and does not demand or accept rent from them, the landlord need not let subtenants cure the tenant's rent default.  Accordingly, the landlord's 3-day notice to quit served on the subtenants was proper though it did not offer them the alternative of curing the tenant's rent default.  Also, under San… Read More

Following Nolte v. Cedars-Sinai Medical Center (2015) 236 Cal.App.4th 1401, this decision holds that it is not an unfair or unlawful business practice for a hospital not to affirmatively disclose, prior to treatment, that it will charge an emergency room charge to patients using the emergency room.  Extensive state and federal statutes and regulations require specific sorts of disclosures of… Read More

CCP 1161.3 provides that a landlord may not terminate a tenancy for (among other things) domestic violence committed against the tenant or a member of the tenant's household so long as the domestic violence is documented by, among other alternatives, a police report.  Over a dissent, this opinion holds that the statute provides a defense to an unlawful detainer action… Read More