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California Holder Rule

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Court of Appeal (Cal.) Finds in Unpublished Decision that Holder Rule Does Not Cap Attorneys’ Fees and Costs

by Scott J. Hyman |

In Medina v. South Coast Car Company, 2017 WL 4128076, at *8 (Cal.App. 4 Dist., 2017), the Court of Appeal held that a settlement agreement entitling Plaintiff to attorneys' fees was not capped by the FTC Holder Rule. In light of the Settlement and section 5, which, the parties agreed, made Medina the “prevailing party,” it is clear from the plain… Read More

Court of Appeal (Cal.) Follows FTC’s May 3, 2012 Advisory Opinion; Holds that FTC Holder Rule Allows Affirmative Claims Against Holders

by Scott J. Hyman |

In Lafferty v. Wells Fargo Bank, --- Cal.Rptr.3d ----, 2013 WL 412900 (2013), the Court of Appeal found that the FTC Holder Rule was not defensive in nature only, and that a consumer can assert affirmative ‘claims and defenses’ against the Holder, as the FTC’s May 3, 2012 Advisory Opinion also held. The Holder Rule unambiguously allows the buyer to… Read More

District Court (Cal.) Remands Case Against Auto Finance Company who Removed to Enforce Arbitration Clause/Class Action Waiver Because FTC Holder Rule/ASFA Involved No Substantial Federal Question

by Scott J. Hyman |

In Medina v. Performance Automotive Group, Inc.,  2012 WL 219308 (E.D.Cal. 2012), Judge Karlton remanded to state court a class action alleging that a car dealer illegally ‘backdated’ retail installment contracts.  The defendant finance company had removed the matter to federal court, and then moved to compel arbitration (and the class action waiver) under Concepcion.   Judge Karlton found that neither… Read More