Justia Civil Rights Opinion Summaries

Articles Posted in Consumer Law
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Defendants–Appellants Abercrombie & Fitch Co., Abercrombie & Fitch Stores, Inc., and J.M. Hollister LLC, d/b/a Hollister Co. (collectively, Abercrombie) appealed several district court orders holding that Hollister clothing stores violated the Americans with Disabilities Act (ADA). Plaintiff–Appellee Colorado Cross-Disability Coalition (CCDC) is a disability advocacy organization in Colorado. In 2009, CCDC notified Abercrombie that Hollister stores at two malls in Colorado violated the ADA. Initial attempts to settle the matter were unsuccessful, and this litigation followed. Abercrombie took it upon itself to correct some barriers plaintiff complained of: it modified Hollister stores by lowering sales counters, rearranging merchandise to ensure an unimpeded path of travel for customers in wheelchairs, adding additional buttons to open the adjacent side doors, and ensuring that the side doors were not blocked or locked. However, one thing remained unchanged: a stepped, porch-like structure served as the center entrance at many Hollister stores which gave the stores the look and feel of a Southern California surf shack. The Tenth Circuit affirmed in part and reversed in part the district court's judgment: affirming the court's denial of Abercrombie's summary judgment motion and certification of a class. However, the Court reversed the district court's partial grant, and later full grant of summary judgment to plaintiffs, and vacated the court's permanent injunction: "each of the district court’s grounds for awarding the Plaintiffs summary judgment [were] unsupportable. It was error to impose liability on the design of Hollister stores based on 'overarching aims' of the ADA. It was also error to impose liability based on the holding that the porch as a 'space' must be accessible. Finally, it was error to hold that the porch must be accessible because it is the entrance used by a 'majority of people.'" View "CO Cross-Disability Coalition, et al v. Abercrombie & Fitch, et al" on Justia Law

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Indiana pawnbrokers must obtain license from the state’s Department of Financial Institutions (DFI). Saalwaechter, owns Fares Pawn in Evansville, Indiana. He applied for a license in 2009, but DFI denied his application, citing concerns about previous operations on the property and about his store manager’s criminal history. The property has been used as a pawnshop for about 20 years, but different businesses with overlapping ownership. Saalwaechter received a license after he signed an agreement to comply with certain conditions, in particular not employing the manager. Saalwaechter sued DFI, alleging violation of the Equal Protection Clause of the Fourteenth Amendment. Saalwaechter did not contend that DFI treated him unfavorably on account of some identifiable characteristic, such as age, sex, or race, but that the state had singled him out for disparate treatment without a rational basis. The district court granted DFI summary judgment on the “class of one” claim, finding that no reasonable jury could conclude that DFI treated Saalwaechter differently from similarly situated applicants without a rational reason. The Seventh Circuit affirmed. View "Fares Pawn, LLC v. IN Dep't of Fin. Insts." on Justia Law

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Former starting quarterback for Arizona State University, Samuel Keller, filed a putative class action suit against EA, alleging that EA violated his right of publicity under California Civil Code 3344 and California common law by using Keller's likeness as part of the "NCAA Football" video game series. EA moved to strike the complaint as a strategic lawsuit against public participation (SLAPP) under California's anti-SLAPP statute, Cal. Civ. Proc. Code 425.16. The court concluded that EA could not prevail as a matter of law based on the transformative use defense where EA's use did not qualify for First Amendment protection because it literally recreated Keller in the very setting in which he had achieved renown. The court also concluded that, although there was some overlap between the transformative use test and the Rogers v. Grimaldi test, the Rogers test should not be imported wholesale to the right-of-publicity claims. Finally, the court concluded that state law defenses for reporting of information did not protect EA's use. Accordingly, the court affirmed the district court's denial of the motion to strike the complaint. View "In re: NCAA Licensing Litig." on Justia Law

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Retired Hall of Fame football player, James "Jim" Brown, filed suit against EA, alleging that EA violated section 43(a) of the Lanham Act, 15 U.S.C. 1125(a), through the use of Brown's likeness in EA's "Madden NFL" series of football video games. The court rejected the "likelihood of confusion" test and the "alternative means" test, concluding that the only relevant legal framework for balancing the public's right to be free from consumer confusion about Brown's affiliation with "Madden NFL" and EA's First Amendment rights in the context of Brown's section 43(a) claim was the Rogers v. Grimaldi test. Applying the Rogers test, the court concluded that the use of Brown's likeness was artistically relevant to the "Madden NFL" games and that there were no alleged facts to support the claim that EA explicitly mislead consumers as to Brown's involvement with the games. In this case, the public interest in free expression outweighed the public interest in avoiding consumer confusion. Accordingly, the court affirmed the district court's grant of EA's motion to dismiss. View "Brown v. Electronic Arts, Inc." on Justia Law

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The cases underlying these consolidated appeals involved the purchase of an automobile. Plaintiffs purchased vehicles and signed retail installment contracts with three separate dealers. The dealers assigned their rights in the contract and vehicles to Credit Acceptance Corporation, who financed the purchases. All of the contracts contained arbitration clauses. Plaintiffs later commenced civil actions against Credit Acceptance in circuit court, alleging, inter alia, violations of the West Virginia Consumer Credit and Protection act (WVCCPA). Credit Acceptance filed a motion to compel arbitration and dismiss, which the circuit court denied, finding that the arbitration agreements were unconscionable based upon the unavailability of some of the arbitration forums named therein and because Plaintiffs in the agreements waived their respective rights to a jury trial. The Supreme Court reversed in both of the cases, holding that because one of the arbitration forums named in the arbitration agreements remained available to arbitrate the parties' disputes, and because an arbitration agreement is not unenforceable solely because a party to the contract waives her right to a jury trial, the causes must be remanded for entry of orders compelling arbitration. View "Credit Acceptance Corp. v. Front" on Justia Law

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In a two-year period, more than eleven million cigarettes manufactured by an Indonesian cigarette manufacturer were sold in Tennessee. After the manufacturer withdrew its cigarettes from the United States market, the State suit the manufacturer, alleging that the manufacturer had failed to pay into the Tobacco Manufacturers' Escrow Fund as required by Tenn. Code Ann. 47-31-101 to -103. The trial court dismissed the suit for lack of personal jurisdiction over the manufacturer. The court of appeals reversed. At issue on appeal was whether Tennessee courts may exercise personal jurisdiction over the Indonesian manufacturer where the manufacturer's cigarettes were sold in the State through the marketing efforts of a Florida entrepreneur who purchased the cigarettes from an independent foreign distributor. The Supreme Court reversed, holding that Tennessee courts lacked personal jurisdiction over the manufacturer because the State failed to establish that the manufacturer purposely availed itself of the privilege of doing business in Tennessee. View "State v. NV Sumatra Tobacco Trading Co." on Justia Law

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Plaintiff-Appellant Olivea Marx appealed a district court's judgment in favor of Defendant-Appellee General Revenue Corporation (GRC). Plaintiff defaulted on her student loan. GRC was hired by her lender to collect on the account. Plaintiff sued GRC alleging abusive and threatening phone called in violation of the Fair Debt Collection Practices Act (FDCPA). The district court, after a one-day trial in May 2010, found that the challenged collection practices were not abusive and threatening given its view of what actually occurred. Plaintiff did not appeal these findings, instead she contested the court's conclusion that a fax sent to her employer asking about her employment status did not violate the FDCPA's provision against debt-collector communications with third parties. Finding that the district court did not error in its decision made in her case, the Tenth Circuit affirmed the court's order.

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Plaintiff appealed from the dismissal of its complaint for lack of subject matter jurisdiction and from the district court's order denying its motion for reconsideration. Plaintiff asserted, inter alia, claims against defendants under the First and Fourth Amendments and under the Right to Financial Privacy Act, 12 U.S.C. 3401-3422, as well as under state constitutions and various anti-wiretapping, consumer protection, and deceptive trade practices laws. On appeal, plaintiff argued that the district court erred by holding that it lacked standing, by denying jurisdictional discovery, and by denying it leave to amend its complaint. The court held that the district court correctly determined that plaintiff did not have Article III standing to assert its claims. Consequently, the district court did not abuse its discretion in denying plaintiff's request for jurisdictional discovery and for leave to amend its complaint. Accordingly, the court affirmed the judgment and order of the district court.

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Appellants appealed the dismissal of their class action complaint against Nextel, the law firm of Leeds, Morelli & Brown, P.C. (LMB), and seven of LMB's lawyers (also LMB). Appellants were former clients of LMB who retained the firm to bring discrimination claims against Nextel. The complaint asserted that, inter alia, LMB breached its fiduciary duty of loyalty to appellants and the class by entering into an agreement with Nextel in which Nextel agreed to pay: (i) $2 million to LMB to persuade en masse its approximately 587 clients to, inter alia, abandon ongoing legal and administrative proceedings against Nextel, waive their rights to a jury trial and punitive damages, and accept an expedited mediation/arbitration procedure; (ii) another $3.5 million to LMB on a sliding scale as the clients' claims were resolved through that procedure; and (iii) another $2 million to LMB to work directly for Nextel as a consultant for two years beginning when the clients' claims had been resolved. The court held that appellants have alleged facts sufficient to state a claim against LMB for, inter alia, breach of fiduciary duty and against Nextel for aiding and abetting breach of fiduciary duty. Therefore, the court vacated and remanded for further proceedings.

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Plaintiff Kathy Lamarque executed a mortgage with defendant Centreville Savings Bank. After defaulting on another loan for a second mortgage on the same property, defendant disclosed the balance of plaintiff's mortgage to the purchaser of plaintiff's property at a foreclosure sale. Plaintiff filed a complaint against defendant for negligence and a violation of plaintiff's privacy rights. At trial, defendant moved for a judgment on partial findings, which the trial court granted. Plaintiff appealed, arguing that her right to privacy was violated by defendant and that the Gramm-Leach-Bliley Act and defendant's privacy policy created a legal duty to protect private information from disclosure. The Supreme Court affirmed, holding that under the facts of the case, plaintiff's privacy rights were not violated and defendant did not breach its duty to plaintiff.