Consumer Law

Body in garden? Cannabis plants inside? Lawyer advises on ‘dark underbelly’ of sharing economy

Recent news reports of travelers encountering a body in the garden of a home in the Paris suburbs rented on Airbnb have focused attention on what attorney D. Hardison Wood calls “the dark underbelly of the sharing economy.” So what do you do if a vacation rental made online with…

Mar 17, 2016 11:55 AM CDT

Delaware Chancery Court voids ‘unconscionable’ payday loan, awards borrower damages

Calling the terms of a $200 payday loan “unconscionable,” Delaware’s influential Court of Chancery voided it Monday and awarded the borrower $3,240 in damages, plus attorney fees. Since plaintiff Gloria James still owes $3 of the original $200 to National Financial LLC, that amount was offset against the damages she…

Mar 16, 2016 11:00 AM CDT

Unsolicited texts sent to plaintiffs lawyer prompt him to step into plaintiff’s shoes

Attorney Todd Friedman makes a living filing class actions over unwanted telephone communications. So when the Los Angeles practitioner allegedly got unwanted auto insurance advertising texts on his own cellphone last month, he knew what to do, Legal Newsline reports. First, he says, after he received this text: “REMINDER: You…

Mar 10, 2016 3:50 PM CST

California lawmakers OK raising legal smoking age from 18 to 21

The California state senate on Thursday gave the final legislative OK to a package of smoking bills, sending to Gov. Jerry Brown for consideration new rules that would, among other things, raise the legal age for purchasing cigarettes to 21 from 18. If he approves, the state would become only…

Mar 10, 2016 3:20 PM CST

State AG sues seeking to shut down troubled bankruptcy firm, alleging fraud

Contending that 136 clients have received “little or nothing in return” for their fees, the Missouri attorney general on Tuesday filed suit seeking a court order requiring a bankruptcy services firm to close and freezing its assets. Also named as defendants by AG Chris Koster in the St. Louis Circuit…

Mar 8, 2016 5:00 PM CST

Home Depot to pay nearly $20M over 2014 data breach that affected more than 40M customers

A 2014 data breach that affected more than 40 million credit and debit cardholders is going to cost Home Depot nearly $20 million in consumer compensation in order to resolve a federal lawsuit. Without admitting liability, the company has agreed to improve data security plus pay $13 million in reimbursement…

Mar 8, 2016 4:10 PM CST

Top state court OKs artist’s UPS suit over missing paintings, says federal law doesn’t trump

When artist Ivana Vidovic Mlinar sent two paintings from Florida to a New York art exhibit in 2005, she didn’t buy insurance even though she says they were worth $30,000. Packed at a shipping store, they were sent via UPS. At some point a UPS representative opened the mailing tube…

Mar 3, 2016 4:45 PM CST

Suit alleging fraud by Trump University isn’t time-barred, New York appeals court rules

A lawsuit filed by New York’s attorney general seeking restitution for Trump University students because of the school’s alleged fraudulent practices may proceed as a result of a ruling on Tuesday. New York’s Appellate Division, First Department, ruled that the statute of limitations does not bar the fraud suit by…

Mar 1, 2016 2:38 PM CST

Trump: Plaintiff shouldn’t be allowed to withdraw from Trump University lawsuit

Donald Trump has asked the judge presiding over a class action lawsuit filed by former customers of Trump University not to allow the named plaintiff to withdraw from the case. The Hollywood Reporter’s THR, Esq. blog reported Friday that the front-runner for the Republican presidential nomination filed an objection with…

Mar 1, 2016 5:45 AM CST

Federal appeals courts split over law on credit card surcharges

Merchants are prohibited by law in 10 states from imposing a surcharge on buyers who use credit cards for purchases. Yet those same laws allow merchants to offer discounts to those who pay with cash.

Mar 1, 2016 3:00 AM CST

Will Consumer Financial Protection Bureau adopt rules to rein in mandatory arbitration clauses?

It seems likely that the Consumer Financial Protection Bureau will develop a rule to end the use of mandatory arbitration clauses by financial services companies such, as banks and credit card companies, according to a business and consumer columnist for the Los Angeles Times. The CFPB is reviewing the use…

Feb 26, 2016 1:00 PM CST

Burberry sues Penney over plaid products, faces unrelated customer suit on outlet store price tags

It has been a busy week for Burberry in the American legal system. On Tuesday, the British luxury goods seller known for its trench coats and cashmere scarves sued J.C. Penney Co. in federal court in Manhattan over claimed misappropriation of Burberry’s iconic plaid “check” pattern. Although the pattern has…

Feb 12, 2016 2:45 PM CST

Avvo offers fixed-fee legal services through an attorney network in 18 states

Expanding on a fledgling plan to offer fixed-fee legal services through a network of lawyers, Avvo has announced that it is rolling out the program in 18 states beginning Tuesday. “The beauty here is we get them the customer, we get the cash up front, and they don’t have to…

Feb 9, 2016 4:40 PM CST

Lawsuits seek $250M due to Flint, Michigan, water supply issues

A federal civil rights lawsuit filed Friday against state and local officials in Flint, Michigan, is seeking a refund of $150 million in municipal water bill payments made while the water supply was contaminated. Now the subject of a criminal investigation, the switch to Flint River water by a state-appointed…

Feb 2, 2016 3:40 PM CST

Appeals court nixes Florida suit over fatal Italian shipwreck of Costa Concordia

Although the parent company of a sunken ocean liner is based in Miami and five plaintiffs are U.S. residents, a Florida appeals court last week nixed a U.S. lawsuit over the fatal 2012 shipwreck. Because the Costa Concordia struck a coral reef off the Italian island of Giglio, the 3rd…

Feb 2, 2016 1:50 PM CST