Justia Consumer Law Opinion Summaries

Barry and Jacklynn Graham hired Bradshaw Renovations, LLC to renovate their home. They agreed on a contract with an initial estimate of $136,168.16, which was later revised to $139,168.16. The contract included provisions for revising estimates and required written approval for changes. Throughout the project, Bradshaw sent invoices that varied from the initial estimate, leading to the Grahams' concerns about billing practices. After paying $140,098.79, the Grahams disputed a final invoice of $18,779.15, leading to a legal dispute.The Iowa District Court for Polk County held a jury trial, which found in favor of the Grahams on their breach of contract and consumer fraud claims, awarding them $16,000 and $40,000 respectively. The court denied Bradshaw's claims for unjust enrichment and quantum meruit. Bradshaw's motions for directed verdict and judgment notwithstanding the verdict were also denied. The court awarded attorney fees to the Grahams for their consumer fraud claim.The Iowa Court of Appeals affirmed the jury verdict, the district court's denial of Bradshaw's posttrial motions, and the dismissal of Bradshaw's equitable claims. It also affirmed the attorney fee award but remanded for determination of appellate attorney fees.The Iowa Supreme Court reviewed the case and found that the Grahams did not present substantial evidence of consumer fraud as defined by Iowa Code section 714H.3(1). The court reversed the district court's ruling on the consumer fraud claim and remanded for entry of judgment consistent with this opinion. The court affirmed the district court's dismissal of Bradshaw's unjust enrichment and quantum meruit claims, as these were covered by the written contract. The court also upheld the $16,000 jury award for the breach of contract claim. View "Bradshaw Renovations, LLC v. Graham" on Justia Law

The plaintiff, Detrina Solomon, a subscriber to a digital video streaming service operated by Flipps Media, Inc. (doing business as FITE), alleged that her rights under the Video Privacy Protection Act (VPPA) were violated when FITE disclosed her streaming history to Facebook (now Meta Platforms, Inc.). The disclosed information included the titles and URLs of the videos she watched and her Facebook ID (FID), which is linked to her Facebook profile.The United States District Court for the Eastern District of New York dismissed Solomon's complaint under Rule 12(b)(6) of the Federal Rules of Civil Procedure, concluding that she failed to plausibly allege that FITE disclosed her personally identifiable information as defined by the VPPA. The district court also denied her leave to amend the complaint, noting that she had multiple opportunities to propose amendments but did not do so.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court's decision. The appellate court adopted the "ordinary person" standard, which holds that personally identifiable information under the VPPA includes information that would allow an ordinary person to identify a consumer's video-watching habits. The court concluded that the information disclosed by FITE, consisting of video titles and FIDs, did not meet this standard because an ordinary person would not be able to use this information to identify Solomon's video-watching habits without additional effort or technological expertise.The court also found no abuse of discretion in the district court's denial of leave to amend, as Solomon's request was made only in a footnote and lacked any proposed amendments to address the deficiencies in her complaint. Thus, the judgment of the district court was affirmed. View "Solomon v. Flipps Media, Inc." on Justia Law

In spring 2020, Czigany Beck, a full-time student at Manhattan College, paid tuition and a comprehensive fee for the semester. Due to the COVID-19 pandemic, the college transitioned to remote learning in March 2020, and Beck received only 46% of her education in person. Beck filed a class action lawsuit against Manhattan College, claiming breach of implied contract and unjust enrichment for not refunding a portion of her tuition and fees.The United States District Court for the Southern District of New York dismissed Beck's claims. The court found that the college's statements were not specific enough to constitute a promise for in-person classes or access to on-campus facilities. The court also ruled that the comprehensive fee was nonrefundable based on the college's terms, and thus Beck's unjust enrichment claim for fees was barred. The court granted summary judgment to Manhattan College on Beck's remaining unjust enrichment claim for tuition, concluding that the college's switch to online instruction was reasonable given the pandemic.Beck appealed to the United States Court of Appeals for the Second Circuit, arguing that the district court's judgment should be reversed based on the decision in Rynasko v. New York University. Manhattan College countered with decisions from the New York Supreme Court's Appellate Division, which supported affirming the district court's judgment. The Second Circuit identified a split between federal and state courts on New York contract-law principles and certified the question to the New York Court of Appeals: whether New York law requires a specific promise to provide exclusively in-person learning to form an implied contract between a university and its students regarding tuition payments. The Second Circuit reserved decision on Beck's appeal pending the New York Court of Appeals' response. View "Beck v. Manhattan College" on Justia Law

Plaintiffs Republic Technologies (NA), LLC and Republic Tobacco, L.P. manufacture and market OCB brand organic hemp rolling papers, while defendant BBK Tobacco & Foods, LLP (HBI) markets RAW brand rolling papers. Republic sued HBI in 2016 for a declaration that OCB’s trade dress did not infringe RAW’s trade dress and later added false advertising claims. HBI counterclaimed, alleging that OCB’s trade dress infringed RAW’s trade dress. A jury trial in 2021 resulted in a mixed verdict, and the district court issued a permanent injunction against some of HBI’s advertising practices.The United States District Court for the Northern District of Illinois found HBI liable under Illinois law for false advertising but not under the federal Lanham Act. The jury also found that OCB’s trade dress for its 99-cent promotional pack infringed RAW’s trade dress, but not the full-priced pack. Republic’s motions for judgment as a matter of law and for a new trial were denied.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court affirmed the district court’s decision, holding that the district court did not abuse its discretion in responding to the jury’s question about the definition of “consumer” and in denying Republic’s motion for a new trial. The court also upheld the jury’s finding of trade dress infringement, noting that sufficient evidence supported the jury’s verdict. Additionally, the court affirmed the district court’s permanent injunction, rejecting HBI’s arguments that the injunction was vague, overbroad, and improperly applied nationwide. The court concluded that the injunction was appropriately tailored to provide complete relief to Republic. View "Republic Technologies (NA), LLC v BBK Tobacco & Foods, LLP" on Justia Law

David O’Connell filed a class action lawsuit against the United States Conference of Catholic Bishops (USCCB) for fraudulent solicitation of donations. O’Connell alleged that USCCB misled donors about the use of funds collected through the Peter’s Pence Collection, which were purportedly for emergency assistance but were instead used for investments and other purposes. O’Connell claimed that if he had known the true use of the funds, he would not have donated.The United States District Court for the District of Columbia denied USCCB’s motion to dismiss the case, which was based on the church autonomy doctrine. The District Court found that O’Connell’s claims raised a secular dispute that could be resolved using neutral principles of law, without delving into religious doctrine. The court emphasized that it would not address purely religious questions if they arose during litigation.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court dismissed USCCB’s appeal for lack of jurisdiction, stating that the collateral order doctrine did not apply. The court held that the church autonomy defense could be adequately reviewed on appeal after a final judgment, and that the denial of the motion to dismiss was not conclusive or separate from the merits of the case. The court emphasized that the church autonomy doctrine does not provide immunity from suit but serves as a defense to liability. The appeal was dismissed, and the case was remanded to the District Court for further proceedings. View "O'Connell v. United States Conference of Catholic Bishops" on Justia Law

Gerald Silver filed a putative class action against the City of Albuquerque, alleging that the City violated the Telephone Consumer Protection Act (TCPA) by making pre-recorded phone calls to invite residents to virtual town hall meetings during the COVID-19 pandemic. Silver claimed he received at least seven such calls on his cell phone. The City argued that it was not subject to the TCPA as it was not a "person" under the statute and that the calls fell under the TCPA’s emergency purposes exception.The United States District Court for the District of New Mexico granted the City’s motion to dismiss, concluding that the calls fell within the emergency purposes exception of the TCPA. The court did not address whether the City was a "person" under the TCPA. Silver appealed the decision.The United States Court of Appeals for the Tenth Circuit reviewed the case de novo and affirmed the district court’s dismissal. The Tenth Circuit held that even assuming the TCPA applies to local governments, Silver’s complaint did not state a claim upon which relief could be granted. The court found that the calls were made by a local government official, were informational, and were made necessary by the COVID-19 pandemic to inform residents about virtual town hall meetings, which were a mitigation measure in response to the pandemic. Therefore, the calls fell within the TCPA’s emergency purposes exception. The court did not need to determine whether local governments qualify as persons under the TCPA. View "Silver v. City of Albuquerque" on Justia Law

Rory M. Isaac and Kimberly J. Isaac, buyers in a residential real estate transaction, sued the sellers' real estate agent, Laura Kopchynski, for failing to disclose high moisture levels in the crawl space and mischaracterizing a wood infestation report as "good." The Isaacs claimed fraud, fraud in the inducement, negligent misrepresentation, civil conspiracy, and violation of the South Carolina Residential Property Condition Disclosure Act.The Circuit Court granted summary judgment to Kopchynski on all claims. The Isaacs appealed, and the Court of Appeals reversed the summary judgment on the negligent misrepresentation and Disclosure Act claims, while affirming the summary judgment on the fraud and civil conspiracy claims. Kopchynski then petitioned for certiorari.The South Carolina Supreme Court reviewed the case. It found that the Isaacs' agent did not rely on Kopchynski's statement about the June CL-100 report being "good" and that the Isaacs had a duty to inspect the property themselves. Therefore, the Isaacs could not establish justifiable reliance, a necessary element for negligent misrepresentation. The Court also held that the South Carolina Residential Property Condition Disclosure Act does not create a private cause of action against real estate licensees, only against property owners.The Supreme Court reversed the Court of Appeals' decision and reinstated the Circuit Court's grant of summary judgment in favor of Kopchynski on both the negligent misrepresentation and Disclosure Act claims. View "Isaac v. Kopchynski" on Justia Law

Tina McPherson purchased a car from Suburban Ann Arbor, a Michigan car dealership, in July 2020. She was misled into believing she had been approved for financing, paid a $2,000 down payment, and drove the car home. Later, she was informed that the financing had fallen through and was given the option to sign a new contract with worse terms or return the car. McPherson refused the new terms, and Suburban repossessed the car and kept her down payment and fees. McPherson sued Suburban, alleging violations of state and federal consumer protection laws.A federal jury found Suburban liable for statutory conversion under Michigan law and violations of the Michigan Regulation of Collection Practices Act, among other claims. The jury awarded McPherson $15,000 in actual damages, $23,000 for the value of the converted property, and $350,000 in punitive damages. The district court denied McPherson's request for treble damages but awarded her $418,995 in attorney’s fees, $11,212.61 in costs, and $6,433.65 in prejudgment interest, totaling $824,641.26. McPherson appealed the denial of treble damages and the amount of attorney’s fees awarded, while Suburban cross-appealed the fee award as excessive.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court held that the district court did not abuse its discretion in denying treble damages, as the $350,000 punitive damages already served to punish and deter Suburban's conduct. The court also found that the district court properly calculated the attorney’s fees, considering the market rates and the skill of McPherson’s attorneys. The court affirmed the district court’s judgment in all respects. View "McPherson v. Suburban Ann Arbor, LLC" on Justia Law

John and Deena Dostart were awarded $182,408.30 in compensatory damages and $17,591.70 in exemplary damages by a jury for consumer fraud claims against their general contractor, Tyler Custom Homes, Ltd., and its owner, James Harmeyer. Columbia Insurance Group, which provided a commercial-general-liability (CGL) insurance policy to Tyler Custom Homes, declined to indemnify the judgment, arguing that consumer fraud is excluded from coverage under the CGL policy. Unable to collect directly from Tyler Custom Homes or Harmeyer, the Dostarts filed a suit seeking payment of the unsatisfied judgment from Columbia.The Iowa District Court for Polk County granted Columbia's motion for summary judgment regarding the exemplary damages but found that fact questions existed as to whether the consumer fraud was an "occurrence" under the CGL policy, whether the jury's award was for "property damage," and whether the intentional acts exclusion applied. The Iowa Court of Appeals affirmed the district court's decision, noting the lack of evidence about the underlying dispute beyond the verdict form and jury instructions.The Iowa Supreme Court reviewed the case and concluded that the consumer fraud involved in the underlying action is not a covered "occurrence" under the CGL policy and that the alleged harm does not include covered "property damage" as defined in the policy. The court vacated the decision of the Court of Appeals, reversed the district court's ruling, and remanded the case for entry of summary judgment in favor of Columbia. The court emphasized that defective workmanship or failure to complete construction does not constitute an "occurrence" under a CGL policy and that the damages sought were not for "property damage" as contemplated by the policy. View "Dostart v. Columbia Insurance Group" on Justia Law

Roxann Brown and Michelle Smith filed a lawsuit against Old Navy, alleging that the retailer sent them e-mails with subject lines containing false or misleading information about the duration of promotions, in violation of the "Commercial Electronic Mail Act" (CEMA). The plaintiffs claimed that Old Navy's e-mails falsely suggested that promotions were ending or were limited-time offers, which were extended beyond the specified time limits.The United States District Court for the Western District of Washington reviewed the case and certified a question to the Washington Supreme Court regarding the interpretation of RCW 19.190.020(1)(b). The federal court sought clarification on whether the statute prohibits any false or misleading information in the subject lines of commercial e-mails or only false or misleading information about the commercial nature of the message.The Washington Supreme Court reviewed the certified question de novo and concluded that RCW 19.190.020(1)(b) prohibits the use of any false or misleading information in the subject line of a commercial e-mail, not just information about the commercial nature of the message. The court emphasized that the statute's plain language is clear and unambiguous, and it does not require judicial construction. The court also noted that the statute's focus on subject lines is appropriate and does not lead to absurd results. The court held that mere puffery, which includes subjective statements, opinions, and hyperbole, is not prohibited by the statute. The court's decision clarifies that commercial e-mails sent to Washington residents must have truthful and non-misleading subject lines. View "Brown v. Old Navy, LLC" on Justia Law