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Unfair Competition Law

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.

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Successive suits by mortgage borrower based on breach of contract and the Truth in Lending Act are not barred by the merger-and-bar aspect of res judicata, since the primary right sued upon is different—TILA protects a right of disclosure of key loan terms, whereas contract law protects the parties' agreement.  Read More

Plaintiff had standing to sue under the Telephone Consumer Protection Act, but not the UCL for unwanted text messages soliciting him to renew a gym membership, but the claims were properly dismissed because plaintiff expressly consented to receive the messages by giving his phone number to the gym, and merely allowing his gym membership to lapse did not revoke that… Read More

Plaintiff suffered economic loss sufficient for UCL standing by buying undiscounted items after a long wait at the cash register after being lured into a store by a 40% off sale sign that did not warn not all items were on sale. Read More

Trial court did not abuse its discretion in granting a permanent injunction against U-Haul's enforcement in California of an unlawful non-competition clause in its dealer agreements, which affected 1,000 U-Haul dealers in California as well as U-Haul's competitors, customers and the general public, since U-Haul’s proposed voluntary non-enforcement of the clause would have allowed it to re-start its former policy… Read More

Uninsured, self-payor patient who paid part of hospital bill and remained liable for the rest had standing to bring, and adequately alleged Consumer Legal Remedies Act and the Unfair Competition Law claims against a hospital for charging him allegedly unconscionable prices for his emergency room treatment.  Read More

Leave to amend to state a UCL claim was properly denied in a mass action by defaulted home loan borrowers as the proposed amendment showed plaintiffs were improperly joined but alleged no facts to support the conclusion they were overcharged.  Read More

A consumer cannot reasonably expect that 100% of the disclosed weight of a lip balm will be usable when the product’s dispenser is fully open, so a label disclosing the balm’s true weight is not deceptive though 25% of the balm is unusable.  Read More

An unfair competition action is governed by the UCL's four-year limitations period, even when it alleges unlawful conduct under another statute that is governed by a shorter limitations period; this rule applies even when the predicate statute is federal, rather than state. Read More

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