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Posts tagged as “Second Circuit”

2nd Cir. Holds False Claims Act Applies to Loans Made By the FRBs

The U.S. Court of Appeals for the Second Circuit recently held that the federal False Claims Act (FCA) applies to persons who present false or fraudulent loan applications to Federal Reserve Banks (FRBs) because the latter are “agents of the United States” within the meaning of the FCA and the loan money is provided by the United States to advance a government program or interest within the meaning of the FCA.

2nd Cir. Holds FDCPA’s SOL Starts When Plaintiff is ‘Injured’

The U.S. Court of Appeals for the Second Circuit recently affirmed the dismissal of a claim under the federal Fair Debt Collection Practices Act holding that an FDCPA violation occurs, for the purposes of the FDCPA’s one year statute of limitations, when an individual is injured by the alleged unlawful conduct. In so ruling, the Second Circuit clarified that in Benzemann v. Citibank N.A., 806 F.3d 98 (2d Cir. 2015), it did not intend to expand the FDCPA’s statute of limitations by requiring individuals to be injured and receive “notice of the FDCPA violation.” A copy of the opinion in Benzemann…

2nd Cir. Holds Post-Filing Amendment Can Divest Court of CAFA Jurisdiction

The U.S. Court of Appeals for the Second Circuit affirmed the dismissal of a case for lack of jurisdiction because when the plaintiffs withdrew their class action allegations in an amended complaint, the withdrawal divested the court of jurisdiction under the federal Class Action Fairness Act (CAFA). A copy of the decision in Gale v. Chicago Title Insurance Company is available at:  Link to Opinion. The plaintiff, an attorney on behalf of himself and a putative class, sued several title insurance company defendants alleging that they had tortiously interfered with business opportunities and violated Connecticut law because under Conn. Gen.…

2nd Cir. Holds Entity is Not a ‘CRA’ Unless It ‘Intends’ to Provide ‘Consumer Reports’ Under FCRA

The U.S. Court of Appeals for the Second Circuit recently affirmed entry of summary judgment in favor of a prominent media and information firm against a job seeker’s claims that it furnished false information in a purported “consumer report” obtained by a prospective employer in alleged violation of the Fair Credit Reporting Act. In so ruling, the Court concluded that the media company was not a “consumer reporting agency,” because it did not intend to furnish “consumer reports” through its services, and thus was not subject to the FCRA, 15 U.S.C. § 1681, et seq. A copy of the opinion…

2nd Cir. Holds Common Fund Principles Apply Even in Fee-Shifting Class Actions

The U.S. Court of Appeals for the Second Circuit held that even if a class action case is brought pursuant to a fee-shifting statute, common-fund principles control fee awards authorized from a common fund, and a common-fund fee award may be calculated as the lodestar or as a percentage of the common fund. Accordingly, the Second Circuit affirmed the trial court’s ruling finding that lead plaintiff’s counsel was entitled to its requested fee and expense award. A copy of the opinion in Fresno County Employees’ Retirement Association v. Isaacson/Weaver Family Trust is available at:  Link to Opinion. This case involved…

2nd Cir. Holds FDCPA Does Not Require Itemization of ‘Amount of the Debt’

The U.S. Court of Appeals for the Second Circuit held that a debt collection letter that informs the consumer of the total, present quantity of his or her debt satisfies section 1692g of the federal Fair Debt Collection Practices Act (FDCPA) notwithstanding its failure to inform the consumer of the debt’s constituent components or the precise rates by which it might later increase. The Court further held that such a letter does not violate section 1692e of the FDCPA for failure to inform the consumer that his or her balance might increase due to interest or fees when the letter…

2nd Cir. Rules in Favor of FTC in FDCPA ‘Unlawful Calls’ Enforcement Action

The U.S. Court of Appeals for the Second Circuit recently affirmed entry of summary judgment in favor of the Federal Trade Commission and against 13 corporations and their two co-owners for violations of the Federal Trade Commission Act and the federal Fair Debt Collection Practices Act for allegedly placing unlawful and threatening collection calls to consumers seeking to collect payday loan debt. In so doing, the Second Circuit concluded that the trial court did not err in holding the offending corporations’ owners jointly and severally liable for the disgorgement assessed against all defendants, which was affirmed as an appropriate amount…

2nd Cir. Holds No FDCPA Violation for Failure to Disclose Whether Fees or Interest Continues to Accrue

In an unpublished ruling, the U.S. Court of Appeals for the Second Circuit held that when a debt collector did not seek to collect fees and interest after default, its letter to a borrower that did not state whether fees and interest continued to accrue after default did not engage in deceptive or misleading conduct in violation of the FDCPA. A copy of the opinion in Derosa v. CAC Financial Corp. is available at:  Link to Opinion. After a borrower defaulted on her credit card account, the original creditor assigned the account to a debt collector.  The debt collector sent a letter…

2nd Cir. Cleans Up Interest Disclosure Mess, Upholds Taylor

Just over two years to the day after it issued its opinion in Avila v. Riexinger & Associates, LLC, the Second Circuit Court of Appeals has issued a critical blow to a recent spate of FDCPA lawsuits attempting to create liability out of thin air. A copy of the opinion in Taylor v. Financial Recovery Services is available at:  Link to Opinion. In Avila, the Second Circuit held that a debt collector violates the FDCPA by stating the “current balance” of a consumer’s debt without disclosing that the balance is increasing due to the accrual of interest or fees.  In Avila, the debt…

2nd Cir. Affirms Judgment in Defendants’ Favor in TCPA Putative Class Action

The U.S. Court of Appeals for the Second Circuit recently affirmed the entry of judgment on the pleadings against the plaintiff in a putative class action alleging that a text message sent by a third party on behalf of a hospital reminding the plaintiff about a flu shot violated the federal Telephone Consumer Protection Act (TCPA), holding that the plaintiff provided his prior express consent to receive such messages in a hospital admission form. A copy of the opinion in Latner v. Mt. Sinai Health System, Inc. is available at:  Link to Opinion. The plaintiff went to a medical clinic owned by a…

2nd Cir. Remands False Claims Act Claim on Materiality of Bank’s Representations

The U.S. Court of Appeals for the Second Circuit recently remanded a federal False Claims Act lawsuit based upon alleged misrepresentations made by a bank when it applied to borrow funds from the Federal Reserve System’s discount window. The Second Circuit remanded the case to the trial court to determine whether the relators adequately alleged the materiality of the bank’s alleged misrepresentations. In so doing, the Second Circuit held that the Supreme Court of the United States had abrogated both the express designation requirement for implied false certification claims, and the particularity requirement for express false certification claims, in its…