The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.
This decision holds that a holder of a consumer contract subject to the FTC Holder Rule cannot avoid liability on claims against the dealer by reassigning the contract to the dealer or a third party after liability for the claim has attached. Any person holding the contract when the claim accrues remains liable on the claim despite later transfer of… Read More
The second sentence of the FTC Holder Rule does not limit recovery of attorney fees under state statutes that render the holder liable for those fees, even on claims that can only be brought against the holder as a result of the FTC Holder Rule. Read More
This case holds that consumers may recover uncapped attorney fees against holders under the FTC Holder Rule. Though the attorney fees are part of the "recovery" that the Holder Rule itself caps, the FTC Holder Rule does not preempt any state laws, but merely prescribes a required contract clause. So, Civil Code 1459.5 is not preempted and it allows full… Read More
