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Consumer & Class Action Blog

Auto Insurance – Consideration of Unfair Factors May Result in Discrimination

Thursday, July 3rd, 2008 by John Campbell

The auto insurance industry is facing an increasing number of lawsuits regarding its pricing of insurance.  According to the National Law Journal, “Insurance companies are being sued for using factors including education, occupation, credit scores and lack of prior coverage to set their prices.” (You can visit the National Law Journal’s online site by clicking […]

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Fiser v. Dell; Another Arbitration Clause is Struck Down for Prohibiting Class Actions

Tuesday, July 1st, 2008 by John Campbell

The newest decision to strike down an arbitration clause that prohibits class actions was issued by the New Mexico Supreme Court on June 27, 2008, in the case of Fiser v. Dell Inc. Plaintiff Robert Fiser filed a class action against Dell arguing that Dell misrepresented the memory capacity of its computers.  Fiser alleged that […]

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Homeowner Receives $1M from Allstate for Defamation

Thursday, April 17th, 2008 by John Campbell

By John Campbell and Brian J. Connolly
A recent jury verdict drives home the potential liability for insurers who wrongfully deny claims to policy holders. In Johnson v. Allstate Indem. Co., a man whose home had recently been damaged in a fire was denied an insurance claim that he filed with his homeowner’s insurance carrier, Allstate […]

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Are Wrongful Death Claims Subject to Arbitration Clauses Signed by The Decedent Under Missouri Law?

Thursday, April 17th, 2008 by John Campbell

Summary
Recently, in Lawrence v. Beverly Manor, No. WD 67920, 2008 WL 731561 (Mo. Ct. App. Mar. 18, 2008), the  Missouri Court of Appeals for the Western District relied on a recent Missouri Supreme Court decision in holding that wrongful death claims are derivative, potentially subjecting them to arbitration if a clause was signed by the […]

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Halliburton Arbitration Clause Update – Texas Court Shuts the Doors to Justice

Friday, March 14th, 2008 by John Campbell

Holding that, “[s]adly, sexual harassment, up to and including sexual assault, is a reality in today’s workplace,” a federal judge enforced a Halliburton arbitration clause that required employees to bring all claims in arbitration.  (To read more click here) A few months ago I wrote a post about a woman who was sexually assaulted in […]

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Employment Tests as Pretext for Discrimination

Thursday, March 6th, 2008 by John Campbell

By John Campbell and Brian Connolly
All the time, employers are searching for new and more effective ways to improve their employee selection process and to ensure that they promote the most qualified employees.  One method which employers have begun using more frequently in recent years to determine the skills of applicants and current employees is […]

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Waterproofing Sprays and Respiratory Problems

Monday, February 25th, 2008 by John Campbell

By Chad Marzen, law clerk for Erich Vieth and John Campbell  
The N.Y. Times recently reported in a December 29, 2007 article that public health officials from several states are taking action above and beyond the Consumer Product Safety Commission to address health concerns attributed to several waterproofing sprays.
The article reports that a Professor of […]

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Class action lawsuits against Aurora Dairy transferred to a St. Louis federal court

Thursday, February 21st, 2008 by John Campbell

NEWS RELEASE
Feb. 22, 2008
 
St. Louis – Four class action lawsuits filed on behalf of consumers against Aurora Dairy Corp. over the company’s sale of organic milk have been consolidated and transferred to a federal court in St. Louis.
The suits allege that the Boulder, Colo.-based dairy misled consumers into believing that the milk they purchased was […]

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Payday lenders are siphoning off social security benefits

Tuesday, February 12th, 2008 by Erich Vieth

Numerous payday lenders are gaining control of the Social Security Benefits of their customers, subtracting 400% interest, then paying out the remainder to their customers as an “allowance.”  This allowance is often a small fraction of the government benefit, the lion’s share being eaten up by the massive interest rates being charged by payday lenders.  […]

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North Carolina Supreme Court strikes unconscionable arbitration clause in consumer loan contract.

Monday, February 4th, 2008 by Erich Vieth

In the January 25, 2008 decision of Tillman v. Commercial Credit Loans Inc., (2008 WL 201750;  Cause No. 360A06), the North Carolina Supreme Court analyzed the arbitration clause inserted into a consumer loan contract by a large loan company and concluded that it was unconscionable and therefore unenforceable:
The inequality of bargaining power between the parties […]

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New Missouri appellate court decision considers Merchandising Practices Act issues

Monday, February 4th, 2008 by Erich Vieth

The Missouri Court of Appeals for the Eastern District of Missouri has recently (January 29, 2008) issued an opinion clarifying several issues with regard to the Missouri Merchandising Practices Act (MMPA), Chapter 407.  The case, Ullrich v. Cadco, ED 89395, involved a purchaser’s fraud claim against the seller of a modular home.  The plaintiff-purchaser made […]

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Judge rebukes payday lender in case filed by Simon Passanante

Tuesday, January 29th, 2008 by John Campbell

When a judge ruled against payday lender Quik Cash in a suit filed by Simon Passanante over the enforceability of a class action–waiver provision, consumers were the ones who came out ahead.
In a 20-page opinion, St. Louis County Circuit Judge Richard S. Bresnahan wrote:  “If a clause immunizes a defendant and paralyzes consumers, it is […]

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Arbitration Clause Prevents Rape Victim Jamie Jones from Day in Court – Halliburton

Friday, December 21st, 2007 by John Campbell

Jamie Leigh Jones, now 23, testified before the House of Representatives that she was gang raped inside the Baghdad Green Zone in July 2005 while she was working for the Halliburton subsidiary KBR Inc, which has support contracts with the US military.
Jones recounted a horrifying story of agreeing to have a drink with coworkers, taking […]

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Misclassification and the FLSA – Who’s Exempt?

Friday, December 21st, 2007 by John Campbell

Under the Fair Labor Standards Act (FLSA), an employer has the ability to qualify an employee as “exempt” from the requirement that overtime be paid.  However, there is obvious potential for abuse if an employer could qualify anyone as exempt, thereby avoiding the extra cost of overtime. As a result, the FLSA provides guidance as […]

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Midland Credit Management and Capital One – Balance Transfers Violate FDCPA

Friday, November 30th, 2007 by John Campbell

Debt collectors never stop coming up with new ways to collect!  Often, in an effort to obtain money anyway they can, they lose sight of the law.  Here is one example:
Encore buys credit card debts.  Midland Credit Management, an affiliate of encore, then collects those debts. As a result, Midland is one of the largest […]

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T-Mobile and Southwest Credit Systems LP – Fair Debt Collection Practices Act Violations

Saturday, November 24th, 2007 by John Campbell

Companies are working very hard to collect every penny they believe they are owed.  Unfortunately, this is leading to a growing number of debt collection abuses.  Here is one example.
T-Mobile turned over a number of delinquent accounts to Southwest Credit Systems LP.  Southwest then sent letters to T-Mobile customers stating that “late payments, missed payments, […]

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Class Action Fairness Act Law Blog – An Unusual Resource

Tuesday, November 20th, 2007 by John Campbell

I recently reviewed a blog dedicated strictly to issues regarding the Class Action Fairness Act (CAFA).  The site is completely dedicated to tracking news, cases and commentary regarding CAFA.  It contains information regarding the jurisdictional burden of proof, the full text of the Act, and a number of other useful links including case summaries. 
The site […]

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Unpaid Overtime and Misclassified Employees – The Fair Labor Standards Act

Friday, November 16th, 2007 by John Campbell

The Fair Labor Standards Act (FLSA) touches on a number of different labor practices, but two issues have gotten the bulk of the attention in the last several years. (Click here to see the full act, provided by Cornell University Law School .)  Both involve an employer’s tendency to underpay its employees, and both are […]

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U.S. Supreme Court considering the enforceability of agreement to expand judicial review of arbitration

Monday, November 12th, 2007 by Erich Vieth

In a case argued before the United States Supreme Court on November 7, 2007, the United States Supreme Court heard oral argument on the issue of whether a “hybrid” arbitration was appropriate pursuant to the Federal Arbitration Act.  Hall Street Associates, L.L.C. v. Mattel Inc. 196 Fed.Appx. 476, 2006 WL 2193411, **1 (C.A.9 (Or.) 2006). 
 
In […]

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Class Action Targets Aurora Organic Dairy – Alleges Consumer Fraud

Thursday, October 18th, 2007 by John Campbell

Simon Passanante has taken the lead in a lawsuit against Aurora Organic Dairy.  On October 5, 2007, Simon Passanante, on behalf of two clients, filed a class action lawsuit seeking certification of a nationwide class of consumers who purchased milk that was produced by Aurora.  It is the first such lawsuit in the country.  The […]

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Independent Contractors in FedEx Uniforms?

Monday, October 1st, 2007 by John Campbell

When you see a FedEx worker walking down the street, or coming in the office, or driving in the truck, did you ever think they might not be FedEx workers at all?  FedEx, in a long court battle, argued just that, saying that FedEx drivers were independent contractors. Thankfully, a decision issued August 13, 2007, […]

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U-HAUL: “TRAILER SWAY,” RENTAL TRAILER AND TOW DOLLY ACCIDENTS

Thursday, September 20th, 2007 by John Campbell

 When driving down any interstate or highway, one is likely to notice the familiar sight of a U-Haul rental trailer. They serve the needs of many families and persons moving from one place to another. Unfortunately, since the 1980s, U-Haul rental trailers have been involved in “trailer sway” accidents which occur when the trailer sways […]

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A Brief Explanation of Yield Spread Premiums – Predatory Lending at Its Best

Wednesday, September 5th, 2007 by John Campbell

As I began to learn more and more about the mortgage industry, one of the fees that troubled me most was the Yield Spread Premium (YSP).  The name alone made me scratch my head.  “What is a yield spread,” I wondered.  I’ve since learned what it is, and why a “premium” is associated with it.  Below, […]

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According to CNN, Lead Laced Bibs are Still for Sale at Toys ‘R’ Us

Monday, August 20th, 2007 by John Campbell

According to a recent CNN story, vinyl baby bibs which contain lead are continuing to be sold at Toy ‘R’ Us and Lisa Kline stores despite testing by two labs which revealed elevated levels of lead.  (To read the entire story, click here)  Both the New York Times and the Center for Environmental Health tested the bibs […]

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FTC lawsuit halts unauthorized debits regarding pre-paid stored-value cards

Thursday, August 16th, 2007 by Erich Vieth

On July 30, a U.S. District Court judge has issued an injunction barring commercial entities from marketing Visa- and MasterCard-branded stored-value cards that have allowed them to make unauthorized debits from the consumers’ bank accounts.
 
These bank-issued Visa- and MasterCard-branded stored-value (prepaid) cards were sold under a variety of names, according to the FTC.  They were […]

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Goodyear Load Range E Tires – Tread Separation

Sunday, August 12th, 2007 by John Campbell

In Clark County, Nevada, a jury awarded three families who lost loved ones due to tread separation and a resulting accident a $30 million judgment.  The verdict was against Goodyear tire and focused on problems with their Load Range E tires, size LT245/75R16.  These tires are designed for light trucks and may be used on […]

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New study: Baby Einstein and Brainy Baby videos appear to hinder cognitive development

Thursday, August 9th, 2007 by Erich Vieth

Baby Einstein and Brainy Baby are now getting some bad publicity based on new research.  It never really made sense to claim that allowing one’s baby to watch more TV is better.  These two corporations have been hawking two products for years, but never produced any credible evidence establishing that tiny babies who watch TV get […]

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Accutane Found to Cause Inflammatory Bowel Disease

Wednesday, August 8th, 2007 by John Campbell

In a recent New Jersey trial involving Accutane (a drug used primarily to treat acne), the jury returned a verdict of $2.62 million against Roche Holding AG, the makers of Accutane.  In the lawsuit, Andrew McCarrell, 36 years old, alleged that after taking Accutane, he suffered inflammatory bowel disease.  He alleged that Accutane caused severe […]

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Dangerous Helmets

Saturday, August 4th, 2007 by John Campbell

Whether it is a bike, a moped, a scooter, or a motorcycle, people wear helmets  to protect themselves from head injuries.  Unfortunately, not all helmets live up to consumers’ expectations.
There are a number of helmet defects that are cannot be discovered until an accident has already occurred.  These defects result in severe injuries and sometimes […]

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A short history of usury laws and their (non)application to payday lenders

Friday, August 3rd, 2007 by Erich Vieth

The topic of usury laws and payday loans arises frequently these days.  Payday lenders commonly charge more than 400% interest on their loans to desperate consumers.  Why do I suggest these consumers are desperate?  It’s because they are writing postdated checks to payday lenders, agreeing to give up a large chunks of their next paychecks, […]

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Unauthorized AOL Online Services (America Online) charge shows up on AT&T bill

Thursday, August 2nd, 2007 by Erich Vieth

It has come to our attention that at least one consumer has noticed an unauthorized monthly charge (in her case, $30.90 per month) showing up on her AT&T bill.   She advised this law firm that her family does not use (and has never used) AOL.   Therefore, the AOL charge was clearly improper.  
 
The AOL charge […]

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“We used to put people in jail for loan sharking”

Wednesday, August 1st, 2007 by Dawn Mefford

A look at Missouri lawmakers’ efforts to return
common sense to the payday loan industry.
• A $3.4 billion hit to American families. 
• Staggering interest rates of up 1950%. 
• 2.87 million loans in Missouri alone. 
• All protected by a well-funded, state lobbying effort. 
The numbers on so-called “payday loans” are astounding, and their impact is felt in hundreds of Missouri communities.  But […]

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Punitive Damages after Phillip Morris USA v. Williams

Wednesday, August 1st, 2007 by John Campbell

On February, 27, 2007, the U.S. Supreme Court issued its decision in Phillip Morris USA v. Williams, ____ U.S. _____, 127 S. Ct. 1057 (2007).  (To read the entire opinion click here.) In Phillip Morris, an Oregon jury awarded the widow of a Marlboro smoker $821,000 in compensatory damages and $79.5 million in punitive damages.  […]

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You Get What You Pay For?

Wednesday, August 1st, 2007 by John Campbell

My dad always said, “You get what you pay for.”  Unfortunately, consumers are learning that this isn’t always true.  If you are like me, all too often, you have bought a product, only to learn that it doesn’t work as advertised.  Put simply, you didn’t get what you paid for.  The “defective product” problem can […]

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Are Some Car-Seats Unsafe? Touriva and On My Way Models Raise Questions

Wednesday, August 1st, 2007 by John Campbell

According to a recent article in the Chicago Tribune, hundreds of thousands of Touriva car-seats that were sold at Cosco and manufactured by Dorel before 2005 pose a serious risk to children. (Click here to read the entire article and watch a video discussing potential problems with car-seat safety.)  The problem is that the car seat, […]

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Pepsi and Coca-Cola will start disclosing that Aquafina and Dasani are made from tap water

Monday, July 30th, 2007 by Erich Vieth

Corporate Accountability International, a U.S. watchdog, has announced that Pepsi will start including the words “Public Water Source” on Aquafina labels, according to this article by Reuters. 
 If this helps clarify the fact that the water originates from public sources, then it’s a reasonable thing to do,” said Michelle Naughton, a Pepsi-Cola North America spokeswoman.
The article […]

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A Quick Prediction about Arbitration Clauses

Wednesday, July 25th, 2007 by John Campbell

I recently wrote a post about how arbitration clauses, in which companies ask people to waive their right to go to court, are becoming more common in everyday transactions.  After that post, a colleague provided me with an arbitration clause being used in St. Louis by Washington University on behalf of its doctors, nurses and […]

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Class action for medical monitoring revived

Tuesday, July 24th, 2007 by Dawn Mefford

In March, the Supreme Court revived a class action lawsuit brought on behalf of children living near the Doe Run lead smelter in Herculaneum, Missouri.  The circuit court was overruled after it refused to certify the plaintiff’s class because the court found that issues pertaining to individual class members predominated over the common issues that […]

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National Consumer Law Center (NCLC) – Consumer Help

Saturday, July 21st, 2007 by John Campbell

The National Consumer Law Center (NCLC), headquartered in Boston, Massachusetts, is dedicated to addressing some of the most critical issues facing consumers around the United States.  They do this in a number of ways.
First, NCLC co-counsels with attorneys around the country to provide input and advice on how to more effectively pursue consumer claims. Most often, […]

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Missouri Court of Appeals holds its nose and forces consumers to arbitrate claim

Thursday, July 19th, 2007 by Erich Vieth

In Kirby vs. Grande Crown Travel Network (Missouri Court of Appeals for the Southern District of Missouri, case number 28091), the Missouri Court of Appeals was not happy that it had to force an elderly couple to arbitrate their consumer fraud claim against a vacation club.  The June 18, 2007 opinion was written by Hon. […]

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Arbitration Fairness Act of 2007

Thursday, July 19th, 2007 by John Campbell

I have written in the past about the growing use of arbitration clauses in consumer and employment contracts.  Too often, these clauses are fine print additions to the contract that purport to prohibit the employee or consumer from resolving disputes in Court.
Senator Russ Feingold  and Representative Hank Johnson have both filed bills in Congress to […]

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Consumer Nationwide Class Action – A Refreshing Decision

Tuesday, July 17th, 2007 by John Campbell

In Hall v. Sprint Spectrum, an Illinois Appellate Court issued a decision which gives consumers and consumer attorneys a reason to celebrate.  2007 WL 1892679  (Ill. App. 5 Dist. 2007).  In the June 27, 2007 opinion written by Judge Stewart, the court upheld the trial court’s certification of a nationwide class (48 states).  This decision […]

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A Few Good Men

Monday, July 16th, 2007 by John Campbell

In our case against Quik Cash (and yes, they actually spell it that way), a payday lender, we are working with four experts who are also attorneys, but this post is not about their testimony.  This post is about my chance to observe their ethics, their passion, and their commitment to helping people.  I have […]

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Arbitration Clauses – Unreadable? Unconscionable?

Thursday, July 12th, 2007 by John Campbell

I recently sat in a deposition in Minnesota with a psychologist named Dr. Mark Hochhauser.  He is a fascinating man who has developed significant expertise in analyzing whether or not documents, including consent forms, arbitration agreements, licensing agreements, etc., are written so that the average person looking at them can understand them. (For examples of […]

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Another Wal-Mart Class Action is Certified – Hours and Wages Violations

Sunday, July 8th, 2007 by John Campbell

Wal-Mart (http://www.walmart.com/) has been sued in Missouri and many other states for allegedly forcing employees to work overtime without pay and encouraging employees to work through breaks and lunches while off the clock.  A New Jersey Court recently certified a class of such employees in New Jersey.  This came on the heels of decisions by […]

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Small Loans. Big Interest.

Friday, July 6th, 2007 by John Campbell

There are a number of small loan lenders in Missouri.  One of the larger lenders is known as King of Kash. These lenders give people loans for a few hundred dollars and then have them pay those loans off over the course of a year.  For example, if a person borrows $200, they would typically […]

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Missouri Title Loan

Friday, July 6th, 2007 by John Campbell

We have filed a lawsuit against Missouri Title Loan alleging that they have violated multiple Missouri statutes that regulate title lending.  If you have done business with Missouri Title Loan and fear your rights have been violated, we would like to talk with you as part of our ongoing investigation into the standard business practices […]

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Title Loans Stores Often Engage in Predatory Lending

Thursday, July 5th, 2007 by John Campbell

Title loans are dangerous business.  A person borrows money from a company, but in exchange they must give the title lender the title to their car and a copy of the key.  If they don’t pay on time, they lose their car.  Adding to the problem is the fact that title loans often carry annual […]

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Credit Card Companies Charge High Fees and Grant Low Lines of Credit

Wednesday, July 4th, 2007 by John Campbell

Increasingly, people are receiving offers for credit cards that promise a higher line of credit than the company is actually willing to grant.  The consumer applies for the card, but when they receive it, the line of credit is very low, often only $200.  This problem is made worse because the credit card companies often […]

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Ethical Class Action Standards

Thursday, June 28th, 2007 by John Campbell

In a recent deposition, Stuart Rossman, head of litigation for the NCLC, mentioned a set of class action guidelines that deserve highlighting.  They emphasize ethical class actions that serve to protect consumers.  The National Association of Consumer Advocates (NACA), has produced these guidelines in an effort to preserve the class-action mechanism as a means for vindicating consumer […]

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Legal consequences of failing to read fine print

Friday, June 22nd, 2007 by Erich Vieth

For the past couple years, I have had the privilege of working as a consumer attorney.  I’ve occasionally written about some of the topics I’ve encountered as a consumer lawyer.  In this post, I’ll address one issue that I commonly encounter in my practice: illegible forms full of fine print that deprive consumers of fundamental […]

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Two class action lawsuits have been filed in Missouri against debt adjustors

Wednesday, June 13th, 2007 by John Campbell

NEWS RELEASE
June 5, 2007
Two class actions lawsuits have been filed in Missouri against debt adjustors.
St. Louis – Class action lawsuits have been filed in Missouri against Dallas-based companies Debt Relief America and Debt Relief USA.
The suit against Debt Relief America (DRA) was filed in Marion County Circuit Court on April 12th.  The suit against Debt […]

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Consumer Alert: diabetes drug Avandia pulled from the market.

Thursday, May 24th, 2007 by Todd Hageman

As you know, the wildly popular drug Avandia may be in danger of being pulled from the market by FDA.  Many believe Avandia to be the next Vioxx.  It was mostly reported that Avandia may have presented an unreasonable risk of heart attack and death in patients for which it was prescribed.  As the following […]

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Simon Passanante files five new lawsuits against subprime lender in St. Louis and Kansas City

Thursday, May 10th, 2007 by Erich Vieth

St. Louis – Missouri homeowners in four counties and St. Louis City sued Ameriquest Mortgage Company, the nation’s largest private subprime lender, alleging it engaged in predatory and abusive practices when refinancing their home loans.
Brought by 29 families, the lawsuits – filed May 9 in St. Louis City, Jackson County, St. Charles County and St. […]

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New federal drug safety bill under consideration

Friday, May 4th, 2007 by Erich Vieth

Consumers Union is reporting on developments relating to a new FDA bill regarding drug safety:
Consumers Union is urging the Senate to approve strong prescription drug-safety provisions this week in a major Food and Drug Administration bill, and resist attempts to weaken the bill when it comes to triggering quick safety action or moderating mass advertising […]

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Wholesalers qualify as “persons liable” under Missouri’s Consumer Fraud Act.

Wednesday, May 2nd, 2007 by Erich Vieth

In a decision released March 20, 2007 , the Missouri Supreme Court held that wholesalers are “persons” liable for violations of the Merchandising Practices Act (MPA).
In Gibbons v. J. Nuckolls, Inc., 216 S.W.3d 667 (Mo. 2007), the car buyer had sued an automobile wholesaler under Merchandising Practices Act (MPA), alleging that the wholesaler (Nuckolls) failed […]

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Simon Passanante files class action against Missouri’s largest payday lender

Wednesday, May 2nd, 2007 by Erich Vieth

Simon Passanante has filed a class action against payday lender QC Financial Inc., which does business as Quik Cash at numerous locations throughout Missouri.The class-action suit alleges that Quik Cash has evaded complying with Missouri financial laws and regulations in making its payday loans to Missouri consumers. According to Erich Vieth, an attorney with Simon […]

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The Practice Areas of Simon Passanante

Tuesday, May 1st, 2007 by Erich Vieth

Since founding their law firm six years ago, Simon Passanante has expanded into more than twenty practice areas.   At its founding Simon Passanante focused on catastrophic personal injuries.   Those cases remain a substantial practice area.   However, the firm’s practice areas now also include areas such as Environmental Law (an area headed by Todd Hageman), Commercial […]

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Class action lawsuit filed against Kansas City-area payday lender.

Wednesday, November 8th, 2006 by Erich Vieth

November 8, 2006 - St. Louis – The payday loan industry in Missouri is booming. There are four times as many payday lenders as there are McDonald’s restaurants. Yet lurking behind the promise of “quick cash” is an economic trap of spiraling debt and loans with interest rates that can top 400 percent. Although Missouri […]

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